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
Microsoft Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-06-30), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial trajectory of the market value added (MVA) exhibits a period of substantial growth followed by a sharp correction in the final year of the analyzed period. From June 30, 2021, to June 30, 2025, a strong capacity to create value well in excess of the capital invested was demonstrated, despite a marginal decline observed in 2022.
- Market Value Evolution
- The market valuation experienced an initial dip to 2,049,673 million in 2022 before entering a steep upward trajectory. This growth peaked at 3,854,116 million by June 30, 2025. However, a significant contraction occurred by June 30, 2026, with the valuation falling to 2,957,303 million.
- Invested Capital Expansion
- A consistent and linear increase in invested capital is observed throughout the entire period. Starting at 143,637 million in 2021, the capital base grew every year without exception, reaching 571,487 million by June 30, 2026. This represents a nearly fourfold increase in invested capital over the six-year span.
- MVA Performance and Correlation
- The MVA remained positive across all analyzed years, indicating that the market valuation consistently exceeded the book value of invested capital. The MVA climbed from 1,855,579 million in 2022 to a peak of 3,423,485 million in 2025. In the final year, June 30, 2026, the MVA decreased to 2,385,816 million. This decline was driven by the simultaneous occurrence of a decreasing market value and a continuing increase in invested capital.
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MVA Spread Ratio
Microsoft Corp., MVA spread ratio calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 2,385,816) | 3,423,485) | 2,825,515) | 2,208,835) | 1,855,579) | 1,986,795) | |
| Invested capital2 | 571,487) | 430,631) | 351,567) | 247,490) | 194,094) | 143,637) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 417.48% | 794.99% | 803.69% | 892.49% | 956.02% | 1,383.21% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | — | 250.34% | 524.20% | 487.90% | 442.58% | 739.74% | |
| Adobe Inc. | — | 486.78% | 642.58% | 991.60% | 658.07% | 1,033.13% | |
| AppLovin Corp. | — | 2,428.40% | 2,384.14% | 420.90% | 60.64% | 260.37% | |
| Cadence Design Systems Inc. | — | 933.78% | 910.94% | 1,934.83% | 1,302.22% | 1,110.87% | |
| CrowdStrike Holdings Inc. | 1,013.22% | 915.68% | 1,264.87% | 608.44% | 1,273.99% | 1,618.25% | |
| Datadog Inc. | — | 1,726.83% | 1,526.17% | 2,743.24% | 1,772.59% | 5,219.74% | |
| International Business Machines Corp. | — | 121.48% | 162.99% | 100.96% | 60.62% | 55.46% | |
| Intuit Inc. | — | 680.73% | 624.57% | 573.60% | 406.80% | 1,175.12% | |
| Oracle Corp. | 275.26% | 499.86% | 370.24% | 324.04% | 224.95% | 260.27% | |
| Palantir Technologies Inc. | — | 12,935.07% | 11,445.95% | 3,878.69% | 488.89% | 829.78% | |
| Palo Alto Networks Inc. | — | 878.49% | 894.07% | 731.80% | 559.30% | 573.51% | |
| Salesforce Inc. | 98.66% | 233.77% | 256.86% | 127.88% | 150.31% | 270.75% | |
| ServiceNow Inc. | — | 622.99% | 1,951.86% | 1,781.96% | 1,276.86% | 1,798.18% | |
| Synopsys Inc. | — | 129.53% | 645.36% | 973.25% | 565.55% | 707.79% | |
| Workday Inc. | 218.32% | 550.99% | 677.38% | 471.48% | 655.74% | 908.31% | |
Based on: 10-K (reporting date: 2026-06-30), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2026 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 2,385,816 ÷ 571,487 = 417.48%
4 Click competitor name to see calculations.
The financial trajectory between June 30, 2021, and June 30, 2026, is characterized by a substantial expansion of the capital base and a fluctuating pattern of market value creation. While the absolute value added by the organization grew for most of the period, the efficiency of this value creation relative to the capital employed declined consistently.
- Market Value Added (MVA)
- MVA exhibited a general upward trend from 2021 through 2025, rising from US$ 1,986,795 million to a peak of US$ 3,423,485 million, notwithstanding a slight decrease in 2022. A significant reversal is observed on June 30, 2026, with MVA dropping to US$ 2,385,816 million, marking a sharp contraction from the previous year's high.
- Invested Capital
- A consistent and aggressive growth pattern is evident in the invested capital. The amount increased every year without exception, rising from US$ 143,637 million in 2021 to US$ 571,487 million by 2026. This indicates a sustained increase in the total resources deployed into the business over the six-year period.
- MVA Spread Ratio
- The MVA spread ratio shows a continuous and steady decline throughout the entire period, falling from a high of 1,383.21% in 2021 to 417.48% in 2026. Because this ratio decreased even while absolute MVA was increasing between 2022 and 2025, it is evident that the rate of market value growth lagged behind the rate of capital investment. The sharpest decline in the ratio occurs in the final year, coinciding with the reduction in absolute MVA and the continued rise in invested capital.
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MVA Margin
Microsoft Corp., MVA margin calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 2,385,816) | 3,423,485) | 2,825,515) | 2,208,835) | 1,855,579) | 1,986,795) | |
| Revenue | 331,839) | 281,724) | 245,122) | 211,915) | 198,270) | 168,088) | |
| Add: Increase (decrease) in unearned revenue | 8,447) | 7,081) | 6,371) | 5,405) | 4,267) | 4,961) | |
| Adjusted revenue | 340,286) | 288,805) | 251,493) | 217,320) | 202,537) | 173,049) | |
| Performance Ratio | |||||||
| MVA margin2 | 701.12% | 1,185.40% | 1,123.50% | 1,016.40% | 916.17% | 1,148.11% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Accenture PLC | — | 160.73% | 297.40% | 251.01% | 213.17% | 379.26% | |
| Adobe Inc. | — | 440.42% | 727.86% | 1,241.42% | 766.46% | 1,287.44% | |
| AppLovin Corp. | — | 2,496.08% | 2,302.25% | 576.21% | 113.54% | 521.30% | |
| Cadence Design Systems Inc. | — | 1,400.60% | 1,395.62% | 1,927.61% | 1,299.21% | 1,128.47% | |
| CrowdStrike Holdings Inc. | 1,698.43% | 1,506.45% | 1,984.37% | 816.60% | 1,995.49% | 3,362.41% | |
| Datadog Inc. | — | 1,024.58% | 1,385.47% | 1,715.05% | 1,226.04% | 4,145.45% | |
| International Business Machines Corp. | — | 215.75% | 288.07% | 179.79% | 105.00% | 105.45% | |
| Intuit Inc. | — | 879.56% | 959.77% | 939.31% | 782.89% | 1,489.94% | |
| Oracle Corp. | 675.21% | 1,001.90% | 704.48% | 626.94% | 412.88% | 514.72% | |
| Palantir Technologies Inc. | — | 6,700.73% | 9,929.53% | 2,081.46% | 820.15% | 1,366.76% | |
| Palo Alto Networks Inc. | — | 1,041.05% | 949.23% | 726.58% | 651.61% | 771.73% | |
| Salesforce Inc. | 211.24% | 504.75% | 593.57% | 323.34% | 417.33% | 620.94% | |
| ServiceNow Inc. | — | 687.15% | 1,605.68% | 1,433.58% | 1,026.11% | 1,555.49% | |
| Synopsys Inc. | — | 755.81% | 1,081.63% | 1,373.41% | 796.87% | 1,126.17% | |
| Workday Inc. | 262.54% | 585.42% | 754.19% | 578.30% | 888.92% | 1,185.07% | |
Based on: 10-K (reporting date: 2026-06-30), 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).
1 MVA. See details »
2 2026 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 2,385,816 ÷ 340,286 = 701.12%
3 Click competitor name to see calculations.
An evaluation of the financial metrics from June 30, 2021, to June 30, 2026, reveals a divergent trend between revenue growth and market value creation toward the end of the period. While adjusted revenue maintained a consistent upward trajectory, the Market Value Added (MVA) and the corresponding MVA margin experienced significant volatility, culminating in a sharp decline in the final reported year.
- Market Value Added (MVA) Trends
- MVA exhibited a general growth pattern between 2022 and 2025, rising from 1.86 trillion USD to a peak of 3.42 trillion USD. However, a substantial reversal occurred in 2026, where MVA dropped to 2.39 trillion USD. This indicates a contraction in the market premium assigned to the entity relative to its invested capital, despite the prior four-year expansion.
- Adjusted Revenue Performance
- Adjusted revenue demonstrated steady and uninterrupted growth throughout the observed period. Starting at 173.05 billion USD in 2021, revenue increased annually, reaching 340.29 billion USD by June 30, 2026. This consistent growth reflects a continuous expansion of the operational scale.
- MVA Margin Analysis
- The MVA margin fluctuated in alignment with market valuation shifts rather than revenue trends. After an initial decline in 2022 to 916.17%, the margin recovered and peaked at 1,185.40% in 2025. In 2026, the margin fell sharply to 701.12%, the lowest point in the series. Because this decline coincided with record revenue levels, it suggests that market valuation contracted significantly even as the company's top-line performance improved.
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