Market Value Added (MVA)
Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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MVA
KLA Corp., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
A consistent upward trajectory is observed in the Market Value Added (MVA) of KLA Corp. over the period from June 30, 2020, to June 30, 2025. The MVA increased from approximately $28.38 billion to $114.80 billion, reflecting a significant expansion in shareholder value created beyond the total invested capital.
- Market Valuation Trends
- The fair market value of the entity exhibited accelerated growth, rising from $34.97 billion in 2020 to $124.05 billion in 2025. This represents a substantial increase in market capitalization, with particularly sharp gains observed between 2023 and 2025.
- Invested Capital Analysis
- Invested capital grew at a moderate and steady pace, increasing from $6.59 billion in 2020 to $9.24 billion in 2025. The growth rate of the capital base remained significantly lower than the growth rate of the market value, suggesting a high degree of capital efficiency.
- Market Value Added (MVA) Interpretation
- The MVA expanded from $28.38 billion in 2020 to $114.80 billion in 2025. This widening gap between market value and invested capital indicates that the market assigns a progressively higher premium to the company's intangible assets, intellectual property, and future earnings potential relative to the tangible capital employed in the business.
MVA Spread Ratio
KLA Corp., MVA spread ratio calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
An analysis of financial performance from June 30, 2020, to June 30, 2025, reveals a period of substantial value creation and expanding market confidence. The data indicates that market valuation has grown at a rate significantly outpacing the growth of the capital invested in the business.
- Market Value Added (MVA)
- A consistent and strong upward trajectory is observed in the MVA, which increased from 28,379,887 thousand USD in 2020 to 114,801,680 thousand USD by 2025. The most pronounced acceleration occurred between 2023 and 2025, where the value surged from approximately 63.9 billion USD to 114.8 billion USD, reflecting a significant increase in the premium the market assigns to the entity over its invested capital.
- Invested Capital
- Invested capital demonstrates steady, incremental growth over the six-year period. Starting at 6,592,642 thousand USD in 2020, the figure rose to 9,244,891 thousand USD in 2025. This moderate and linear growth suggests a disciplined capital allocation strategy relative to the exponential growth observed in market valuation.
- MVA Spread Ratio
- The MVA spread ratio shows a significant expansion in value efficiency, rising from 430.48% in 2020 to 1,241.79% in 2025. Although a brief contraction occurred in 2022, where the ratio declined to 664.85%, the trend subsequently reversed and accelerated, surpassing the 1,000% threshold by 2024. This trajectory indicates that the market's perception of future earnings potential and growth has vastly exceeded the physical and financial capital contributions required to sustain operations.
MVA Margin
KLA Corp., MVA margin calculation, comparison to benchmarks
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Revenues | |||||||
| Add: Increase (decrease) in deferred system and service revenue | |||||||
| Adjusted revenues | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
An analysis of the financial performance from June 30, 2020, to June 30, 2025, reveals a substantial and consistent expansion in market value creation relative to operational scale. The most prominent trend is the aggressive growth of Market Value Added (MVA), which suggests increasing investor confidence and a significant rise in the company's perceived future earning potential.
- Market Value Added Growth
- A strong upward trajectory is observed in MVA, which increased from approximately 28.38 billion US dollars in 2020 to 114.80 billion US dollars by 2025. This represents a more than fourfold increase over the six-year period. The growth accelerated notably in the final two years, with the largest absolute increase occurring between June 30, 2024, and June 30, 2025.
- Adjusted Revenue Trends
- Adjusted revenues demonstrated a general growth pattern, rising from 5.88 billion US dollars in 2020 to 12.09 billion US dollars in 2025. While the trend was primarily positive, a slight contraction was noted in 2024, where revenues decreased from 10.73 billion US dollars to 10.35 billion US dollars before recovering in 2025.
- MVA Margin Dynamics
- The MVA margin exhibited significant volatility but maintained an overall upward trend, starting at 482.27% in 2020 and ending at 949.75% in 2025. A notable divergence occurred in 2024; despite the slight decline in adjusted revenues, the MVA margin surged from 595.34% to 865.83%. This indicates that the market value increased independently of immediate revenue growth, reflecting a decoupling of market valuation from current sales volume and suggesting a high premium placed on the company's strategic positioning or intellectual property.