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.
MVA
Lam Research Corp., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-06-28), 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of market value added (MVA) reveals a significant overall expansion in the wealth created for shareholders over the observed six-year period. While there was a temporary contraction in 2022, the subsequent trajectory shows an aggressive acceleration in market valuation relative to the capital invested in the business.
- Market Value Trends
- The market fair value exhibited volatility in the early period, decreasing from US$ 87.96 billion in June 2021 to US$ 68.22 billion in June 2022. However, a consistent recovery followed, with values climbing to US$ 108.17 billion by June 2024 and US$ 133.26 billion by June 2025. A substantial escalation is observed in June 2026, where the market value reached US$ 393.16 billion, indicating a sharp increase in investor confidence or perceived future earnings potential.
- Invested Capital Progression
- Invested capital maintained a steady and moderate upward trend, growing from US$ 12.26 billion in June 2021 to US$ 17.89 billion in June 2026. A minor contraction occurred in June 2024, where capital decreased slightly to US$ 14.84 billion from the previous year's US$ 14.99 billion. This relative stability in invested capital contrasts sharply with the volatility and eventual surge of the market valuation.
- Market Value Added (MVA) Analysis
- The MVA followed the trajectory of the market value closely, as the invested capital remained relatively stable. The MVA declined to a period low of US$ 54.70 billion in June 2022 but rebounded to US$ 76.61 billion in June 2023. From 2023 onward, a strong growth phase is evident, culminating in an MVA of US$ 375.27 billion by June 2026. This widening gap between the market value and the invested capital suggests that the market is attributing immense value to the company's intangible assets, strategic positioning, or growth prospects beyond its tangible capital base.
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MVA Spread Ratio
Lam Research Corp., MVA spread ratio calculation, comparison to benchmarks
| Jun 28, 2026 | Jun 29, 2025 | Jun 30, 2024 | Jun 25, 2023 | Jun 26, 2022 | Jun 27, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 375,272,286) | 116,898,843) | 93,324,925) | 76,609,159) | 54,703,979) | 75,690,790) | |
| Invested capital2 | 17,887,594) | 16,358,579) | 14,840,667) | 14,985,787) | 13,512,167) | 12,264,919) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 2,097.95% | 714.60% | 628.85% | 511.21% | 404.85% | 617.13% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | 426.92% | 213.10% | 370.13% | 119.87% | 2,219.60% | |
| Analog Devices Inc. | — | 210.40% | 165.45% | 117.77% | 103.56% | 117.94% | |
| Applied Materials Inc. | — | 929.00% | 640.75% | 671.06% | 515.59% | 815.05% | |
| Broadcom Inc. | — | 986.32% | 681.05% | 780.11% | 327.90% | 373.48% | |
| Intel Corp. | — | 119.34% | 29.14% | 136.50% | 56.17% | 138.47% | |
| KLA Corp. | 2,374.79% | 1,241.79% | 1,008.93% | 749.49% | 664.85% | 735.96% | |
| Micron Technology Inc. | — | 266.06% | 134.98% | 65.44% | 17.24% | 80.72% | |
| NVIDIA Corp. | 4,383.73% | 6,599.24% | 5,287.84% | 2,593.21% | 3,533.65% | 2,455.53% | |
| Qualcomm Inc. | — | 547.82% | 553.50% | 331.81% | 372.61% | 739.14% | |
| Texas Instruments Inc. | — | 645.94% | 570.65% | 565.70% | 853.39% | 887.48% | |
Based on: 10-K (reporting date: 2026-06-28), 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27).
1 MVA. See details »
2 Invested capital. See details »
3 2026 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 375,272,286 ÷ 17,887,594 = 2,097.95%
4 Click competitor name to see calculations.
The financial performance from June 2021 to June 2026 exhibits a significant expansion in market value relative to the capital invested. While there was a period of volatility between 2021 and 2022, the subsequent years show an accelerating upward trajectory in both absolute market value added and the efficiency of capital utilization as perceived by the market.
- Market Value Added (MVA)
- A fluctuating but overall bullish trend is evident. MVA declined from 75,690,790 thousand USD in June 2021 to 54,703,979 thousand USD in June 2022. However, a strong recovery followed, with values climbing steadily to 93,324,925 thousand USD by June 2024 and 116,898,843 thousand USD by June 2025. A substantial surge occurred in June 2026, where MVA reached 375,272,286 thousand USD, representing a sharp increase in the premium the market assigns to the organization over its book value.
- Invested Capital
- Invested capital demonstrated a consistent and gradual increase over the analyzed period. From an initial 12,264,919 thousand USD in June 2021, the capital grew to 14,985,787 thousand USD by June 2023. After a marginal contraction to 14,840,667 thousand USD in June 2024, the trend resumed its upward path, ending at 17,887,594 thousand USD in June 2026. The growth in invested capital remained linear and stable compared to the more volatile growth of the MVA.
- MVA Spread Ratio
- The MVA spread ratio mirrors the movements of the MVA, reflecting the market's valuation efficiency. The ratio fell from 617.13% in June 2021 to a period low of 404.85% in June 2022. Following this dip, the ratio climbed consistently, reaching 714.60% by June 2025. The period concluded with a dramatic escalation to 2,097.95% in June 2026. This exponential increase indicates that the market's perception of value creation far outpaced the actual capital investment, suggesting high investor confidence in the company's future earning potential and strategic positioning.
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MVA Margin
Lam Research Corp., MVA margin calculation, comparison to benchmarks
| Jun 28, 2026 | Jun 29, 2025 | Jun 30, 2024 | Jun 25, 2023 | Jun 26, 2022 | Jun 27, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 375,272,286) | 116,898,843) | 93,324,925) | 76,609,159) | 54,703,979) | 75,690,790) | |
| Revenue | 23,232,690) | 18,435,591) | 14,905,386) | 17,428,516) | 17,227,039) | 14,626,150) | |
| Add: Increase (decrease) in deferred revenue | (247,063) | 1,129,463) | (286,311) | (360,193) | 1,079,292) | 581,380) | |
| Adjusted revenue | 22,985,627) | 19,565,054) | 14,619,075) | 17,068,323) | 18,306,331) | 15,207,530) | |
| Performance Ratio | |||||||
| MVA margin2 | 1,632.64% | 597.49% | 638.38% | 448.84% | 298.83% | 497.72% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | — | 760.86% | 481.21% | 944.62% | 297.25% | 836.71% | |
| Analog Devices Inc. | — | 803.27% | 763.82% | 422.86% | 388.08% | 757.72% | |
| Applied Materials Inc. | — | 658.93% | 445.92% | 449.88% | 297.74% | 520.10% | |
| Broadcom Inc. | — | 2,316.49% | 1,861.97% | 1,364.98% | 613.40% | 879.63% | |
| Intel Corp. | — | 263.29% | 50.65% | 231.83% | 78.99% | 155.07% | |
| KLA Corp. | 1,793.43% | 949.75% | 865.83% | 595.34% | 562.11% | 725.36% | |
| Micron Technology Inc. | — | 435.43% | 286.66% | 225.16% | 29.56% | 135.02% | |
| NVIDIA Corp. | 2,123.15% | 2,389.97% | 2,669.68% | 2,051.63% | 2,368.66% | 1,919.74% | |
| Qualcomm Inc. | — | 387.02% | 438.87% | 291.70% | 248.18% | 445.16% | |
| Texas Instruments Inc. | — | 1,044.46% | 954.68% | 729.45% | 748.35% | 793.86% | |
Based on: 10-K (reporting date: 2026-06-28), 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27).
1 MVA. See details »
2 2026 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 375,272,286 ÷ 22,985,627 = 1,632.64%
3 Click competitor name to see calculations.
The financial trajectory from 2021 to 2026 exhibits a significant expansion in shareholder value creation, characterized by an exponential increase in Market Value Added (MVA) relative to revenue growth.
- Market Value Added (MVA)
- A volatile but strongly upward trend is observed in the MVA. Following a decrease from US$ 75.7 billion in 2021 to US$ 54.7 billion in 2022, a consistent recovery occurred through 2025. A substantial surge is noted in 2026, where MVA reached US$ 375.3 billion, marking a dramatic increase in the market's valuation of the company's invested capital.
- Adjusted Revenue
- Revenue patterns demonstrate cyclical fluctuations. An initial increase in 2022 was followed by a two-year decline, reaching a trough of US$ 14.6 billion in 2024. A subsequent recovery phase resulted in a peak of US$ 23.0 billion by 2026, indicating an overall upward trend despite interim volatility.
- MVA Margin
- The MVA margin indicates a decoupling of market valuation from current revenue streams. After a significant drop to 298.83% in 2022, the margin stabilized between 448% and 638% from 2023 to 2025. In 2026, the margin expanded exponentially to 1,632.64%, suggesting that the increase in market value far exceeded the proportional growth in adjusted revenue.
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