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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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2020
- Debt to Equity since 2020
- Total Asset Turnover since 2020
- Price to Operating Profit (P/OP) since 2020
- Analysis of Revenues
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MVA
Palantir Technologies Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 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).
2 Invested capital. See details »
The information presents a five-year trend of market value, invested capital, and market value added. A significant increase in market value added is observed over the period, particularly from 2022 to 2024. While invested capital fluctuates, it remains considerably lower than the market value added throughout the observed timeframe.
- Market Value
- The market value demonstrates a decrease from 2021 to 2022, falling from US$24.04 million to US$18.09 million. However, a substantial recovery and subsequent growth are evident, with values reaching US$49.25 million in 2023, US$289.48 million in 2024, and US$312.72 million in 2025. This indicates a strong positive shift in market perception or performance in the later years.
- Invested Capital
- Invested capital initially increases from US$2.59 million in 2021 to US$3.07 million in 2022. A notable decline is then recorded in 2023, decreasing to US$1.24 million. The figure rises again in 2024 to US$2.51 million, followed by a slight decrease to US$2.40 million in 2025. The fluctuations suggest potential changes in capital allocation strategies or project funding.
- Market Value Added (MVA)
- The MVA mirrors the trend in market value, decreasing from US$21.46 million in 2021 to US$15.02 million in 2022. A dramatic increase is then observed, with MVA reaching US$48.01 million in 2023, US$286.97 million in 2024, and US$310.32 million in 2025. This substantial growth in MVA suggests that the company is generating significant value for its investors beyond the capital they have invested.
- Relationship between MVA and Invested Capital
- Throughout the period, the MVA consistently exceeds the invested capital by a significant margin. This indicates that the company is effectively utilizing its invested capital to generate substantial market value. The widening gap between MVA and invested capital in the later years suggests increasing efficiency in value creation.
In summary, the observed trend indicates a period of initial decline followed by substantial growth in market value and, consequently, market value added. While invested capital experiences fluctuations, it remains considerably lower than the value created for shareholders, suggesting effective capital management and value generation.
MVA Spread Ratio
Palantir Technologies Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
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.
The analysis reveals a significant and evolving relationship between market value added and invested capital over the five-year period. Market value added demonstrates substantial fluctuations, while invested capital exhibits a more restrained pattern. The MVA spread ratio, calculated from these figures, shows a dramatic increase over time.
- Market Value Added (MVA)
- Market value added decreased from US$21.46 million in 2021 to US$15.02 million in 2022, representing a decline of approximately 30%. A substantial recovery and subsequent growth are then observed, with MVA reaching US$48.01 million in 2023, US$286.97 million in 2024, and further increasing to US$310.32 million in 2025. This indicates a considerable improvement in the market’s assessment of the company’s value creation relative to its invested capital, particularly in the later years of the period.
- Invested Capital
- Invested capital increased from US$2.59 million in 2021 to US$3.07 million in 2022, before decreasing significantly to US$1.24 million in 2023. It then rose again to US$2.51 million in 2024 and slightly decreased to US$2.40 million in 2025. The fluctuations suggest potential shifts in capital allocation strategies or operational requirements. The overall trend is relatively stable compared to the volatility observed in market value added.
- MVA Spread Ratio
- The MVA spread ratio exhibits a pronounced upward trend. Starting at 829.78% in 2021, it decreased to 488.89% in 2022, mirroring the decline in MVA. However, the ratio then experiences exponential growth, reaching 3,878.69% in 2023, 11,445.95% in 2024, and peaking at 12,935.07% in 2025. This substantial increase signifies that market value added is growing at a significantly faster rate than invested capital, indicating a strong positive market perception of the company’s ability to generate value from its investments. The ratio’s magnitude in the final two years suggests a potentially unsustainable or exceptionally high level of value creation relative to capital employed.
In summary, the period is characterized by a dramatic divergence between market value added and invested capital, resulting in a rapidly escalating MVA spread ratio. While initial years show a decline in MVA, the subsequent recovery and growth, coupled with relatively stable invested capital, drive a substantial increase in the ratio, suggesting a significant improvement in market-perceived value creation.
MVA Margin
Palantir Technologies Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited substantial fluctuations over the observed period. Initially, a decrease in MVA is noted between 2021 and 2022, followed by significant growth in subsequent years. Adjusted revenue consistently increased throughout the period, though the rate of increase varied.
- Market Value Added (MVA)
- The MVA began at US$21.46 million in 2021, declining to US$15.02 million in 2022. A considerable increase is then observed, reaching US$48.01 million in 2023. This growth accelerated dramatically in 2024, with MVA reaching US$286.97 million, and continued to US$310.32 million in 2025. The growth from 2022 to 2025 is particularly noteworthy.
- Adjusted Revenue
- Adjusted revenue increased steadily from US$1.57 million in 2021 to US$1.83 million in 2022. The rate of growth increased between 2022 and 2023, reaching US$2.31 million. Further growth occurred between 2023 and 2024, with revenue reaching US$2.89 million. The largest increase in adjusted revenue occurred between 2024 and 2025, reaching US$4.63 million.
- MVA Margin
- The MVA margin initially stood at 1,366.76% in 2021, decreasing substantially to 820.15% in 2022. The margin then increased to 2,081.46% in 2023. A dramatic surge is evident in 2024, with the MVA margin reaching 9,929.53%, before decreasing to 6,700.73% in 2025. The MVA margin’s volatility suggests a strong relationship with changes in MVA, and a disproportionate impact from revenue changes in 2024.
The substantial increase in both MVA and adjusted revenue, particularly from 2023 onwards, suggests positive market perception and operational performance. However, the high and fluctuating MVA margin warrants further investigation to understand the underlying drivers and sustainability of this trend.