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
Monolithic Power Systems Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2 Invested capital. See details »
The analysis of Market Value Added (MVA) from 2020 to 2024 reveals a period of substantial valuation growth followed by a moderate correction. The company maintains a significant positive spread between its market valuation and the capital invested in its operations, indicating that the market perceives the firm's intrinsic value to be far greater than its book value of invested capital.
- Market Value Trajectory
- The market value experienced a consistent upward trend from 2020, rising from approximately 17.49 billion USD to a peak of 34.46 billion USD by December 31, 2023. This period represents a substantial increase in market capitalization over three years. However, a downward correction occurred by the end of 2024, with the value retreating to 27.56 billion USD.
- Invested Capital Expansion
- Invested capital demonstrates a steady and uninterrupted increase throughout the reporting period. From a base of 635.28 million USD in 2020, capital grew to 1.69 billion USD by 2024. This growth indicates a continuous expansion of the asset base and operational investment, which remained decoupled from the volatility seen in the market value.
- Market Value Added (MVA) Dynamics
- MVA followed a trajectory closely mirrored by the market value, starting at 16.85 billion USD in 2020 and reaching a maximum of 32.99 billion USD in 2023. The decrease to 25.87 billion USD in 2024 was driven by the contraction in market value, which more than offset the continued rise in invested capital. The persistent and high ratio of MVA to invested capital suggests that the market attributes a significant premium to the company's intangible assets, competitive positioning, and future growth prospects.
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MVA Spread Ratio
Monolithic Power Systems Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 25,865,223) | 32,988,993) | 21,172,552) | 20,245,269) | 16,853,639) | |
| Invested capital2 | 1,689,877) | 1,475,541) | 1,231,421) | 683,433) | 635,280) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 1,530.60% | 2,235.72% | 1,719.36% | 2,962.29% | 2,652.95% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 213.10% | 370.13% | 119.87% | 2,219.60% | — | |
| Analog Devices Inc. | 165.45% | 117.77% | 103.56% | 117.94% | 210.89% | |
| Applied Materials Inc. | 640.75% | 671.06% | 515.59% | 815.05% | 555.54% | |
| Broadcom Inc. | 681.05% | 780.11% | 327.90% | 373.48% | 237.62% | |
| Intel Corp. | 29.14% | 136.50% | 56.17% | 138.47% | — | |
| KLA Corp. | 1,008.93% | 749.49% | 664.85% | 735.96% | — | |
| Lam Research Corp. | 628.85% | 511.21% | 404.85% | 617.13% | — | |
| Marvell Technology Inc. | 229.84% | 97.37% | 200.17% | 270.10% | — | |
| Micron Technology Inc. | 136.73% | 66.27% | 17.46% | 81.70% | — | |
| NVIDIA Corp. | 5,287.84% | 2,593.21% | 3,533.65% | 2,455.53% | — | |
| Qualcomm Inc. | 553.50% | 331.81% | 372.61% | 739.14% | 815.45% | |
| Texas Instruments Inc. | 570.65% | 565.70% | 853.39% | 887.48% | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 25,865,223 ÷ 1,689,877 = 1,530.60%
4 Click competitor name to see calculations.
Between 2020 and 2024, the organization demonstrated substantial value creation, characterized by a market valuation that significantly exceeded its invested capital. While the absolute magnitude of value creation remained high, the efficiency of this process relative to the expanding capital base showed signs of volatility and a general downward trend toward the end of the period.
- Market Value Added (MVA)
- A strong upward trajectory was observed from 2020 through 2023, with MVA rising from $16.85 billion to a peak of $32.99 billion. This growth suggests an increasing premium placed on the company by the market. However, this trend reversed in 2024, as MVA declined to $25.87 billion, indicating a contraction in the market's valuation of the firm's future potential.
- Invested Capital
- Invested capital exhibited consistent and linear growth over the analyzed timeframe. The capital base increased from $635.28 million in 2020 to $1.69 billion by December 31, 2024. This represents a steady expansion of the resources deployed into the business, reflecting ongoing investment in operational capacity and growth.
- MVA Spread Ratio
- The MVA spread ratio experienced significant fluctuation, peaking at 2,962.29% in 2021 before entering a volatile decline. Despite a temporary recovery to 2,235.72% in 2023, the ratio reached a period low of 1,530.60% in 2024. The decline in this ratio suggests that the growth in invested capital has outpaced the growth in market value added, leading to a reduction in the relative efficiency of value creation per unit of capital invested.
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MVA Margin
Monolithic Power Systems Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 25,865,223) | 32,988,993) | 21,172,552) | 20,245,269) | 16,853,639) | |
| Revenue | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,171.91% | 1,811.52% | 1,180.09% | 1,676.21% | 1,995.81% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Advanced Micro Devices Inc. | 481.21% | 944.62% | 297.25% | 836.71% | — | |
| Analog Devices Inc. | 763.82% | 422.86% | 388.08% | 757.72% | 685.43% | |
| Applied Materials Inc. | 445.92% | 449.88% | 297.74% | 520.10% | 422.74% | |
| Broadcom Inc. | 1,861.97% | 1,364.98% | 613.40% | 879.63% | 656.02% | |
| Intel Corp. | 50.65% | 231.83% | 78.99% | 155.07% | — | |
| KLA Corp. | 865.83% | 595.34% | 562.11% | 725.36% | — | |
| Lam Research Corp. | 638.38% | 448.84% | 298.83% | 497.72% | — | |
| Marvell Technology Inc. | 794.86% | 329.04% | 893.35% | 828.99% | — | |
| Micron Technology Inc. | 286.66% | 225.16% | 29.56% | 135.02% | — | |
| NVIDIA Corp. | 2,669.68% | 2,051.63% | 2,368.66% | 1,919.74% | — | |
| Qualcomm Inc. | 438.87% | 291.70% | 248.18% | 445.16% | 615.38% | |
| Texas Instruments Inc. | 954.68% | 729.45% | 748.35% | 793.86% | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × 25,865,223 ÷ 2,207,100 = 1,171.91%
3 Click competitor name to see calculations.
Between 2020 and 2024, the financial performance is characterized by consistent revenue expansion alongside a volatile relationship between market valuation and top-line growth. While both absolute market value added and revenue increased over the five-year period, the efficiency of value creation relative to revenue experienced significant fluctuations.
- Market Value Added (MVA)
- A general upward trend in MVA was observed from 2020 through 2023, with the value increasing from $16.85 billion to a peak of $32.99 billion. This growth suggests a substantial increase in the market's perception of the company's future value creation. However, a contraction occurred in 2024, where MVA declined to $25.87 billion, representing a reduction from the previous year's peak.
- Revenue Performance
- Revenue exhibited a sustained and steady growth trajectory throughout the entire period. Starting at $844.45 million in 2020, revenue grew to $2.21 billion by 2024. The most aggressive growth phase occurred between 2021 and 2022, followed by a period of stabilization in 2023 and a renewed increase in 2024.
- MVA Margin Trends
- The MVA margin displayed significant volatility, reflecting a disconnect between revenue growth and market valuation. The margin peaked in 2020 at 1,995.81% and declined through 2022 to 1,180.09%. A sharp recovery was noted in 2023, reaching 1,811.52%, which aligned with the peak in absolute MVA. By 2024, the margin retreated to 1,171.91%, the lowest point in the analyzed period, indicating that the increase in revenue in 2024 was accompanied by a disproportionate decrease in market value added.
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