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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MVA
Palantir Technologies 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Palantir
- The market value exhibits considerable fluctuations over the observed period. It declined significantly from approximately $44.0 billion at the end of 2020 to about $18.1 billion by the end of 2022. This was followed by a strong recovery starting in 2023, with the value increasing to nearly $49.2 billion, and a substantial surge occurring in 2024, reaching approximately $289.5 billion. This pattern suggests a period of volatility with a notable recovery and significant growth in the most recent year.
- Invested capital
- Invested capital showed a gradual increase from roughly $2.18 billion in 2020 to a peak of $3.07 billion by the end of 2022. However, there was a marked decrease in 2023 to approximately $1.24 billion, followed by a recovery to $2.51 billion in 2024. This indicates variability in the capital invested by the company, with an overall trend of initial growth, a dip, and a rebound in the latest year.
- Market Value Added (MVA)
- MVA parallels the trends observed in the market value, beginning at approximately $41.8 billion in 2020 and declining to around $15.0 billion by 2022. It then sharply increased to about $48.0 billion in 2023 and experienced an extraordinary rise to nearly $287.0 billion by the end of 2024. This reflects the company’s substantial value creation relative to invested capital in the latter years, particularly in 2024.
MVA Spread Ratio
Palantir Technologies Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows significant fluctuations over the observed period. Initially, there is a decline from approximately 41.8 billion USD at the end of 2020 to about 15 billion USD by the end of 2022. Subsequently, a strong recovery occurs with a marked increase reaching roughly 48 billion USD in 2023, followed by a substantial surge to nearly 287 billion USD by the end of 2024. This indicates a noteworthy enhancement in the company's market valuation after a period of contraction.
- Invested Capital
- Invested capital displays a moderate upward trend between 2020 and 2022, rising from approximately 2.18 billion USD to about 3.07 billion USD. This is followed by a sharp decline in 2023 to around 1.24 billion USD. However, there is a recovery in 2024 with the invested capital increasing again to approximately 2.51 billion USD. The pattern suggests variability in the capital employed, possibly reflecting strategic investment adjustments or asset restructuring.
- MVA Spread Ratio
- The MVA spread ratio, representing the premium of market value over invested capital, experiences a downward trend from nearly 1920% at the end of 2020 to approximately 489% by the end of 2022. This declining trend reverses markedly in 2023 with a sharp increase to about 3879%, followed by a dramatic rise reaching above 11,400% in 2024. The elevated ratio in the latter years reflects a pronounced expansion in market valuation relative to invested capital, indicating enhanced market confidence or improved profitability prospects.
MVA Margin
Palantir Technologies 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 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 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 ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added displayed a fluctuating pattern over the reported years. It started at approximately $41.83 billion in 2020, declining significantly to around $21.46 billion in 2021, and further decreasing to about $15.02 billion in 2022. However, a notable recovery occurred in 2023, with the figure rising sharply to approximately $48.01 billion, followed by an exceptional increase to $286.97 billion in 2024. This suggests a substantial enhancement in market value in the most recent periods after initial declines.
- Adjusted Revenue
- Adjusted revenue exhibited consistent growth throughout the observed timeframe. Beginning at approximately $1.07 billion in 2020, it rose steadily each year to reach around $1.57 billion in 2021, $1.83 billion in 2022, and further climbed to about $2.31 billion in 2023. The upward trend continued robustly in 2024, with adjusted revenue attaining nearly $2.89 billion. This steady increase indicates ongoing business expansion and revenue generation improvement.
- MVA Margin
- The MVA margin experienced a pronounced decline from an extremely high starting point of 3910.89% in 2020 to 1366.76% in 2021 and further down to 820.15% in 2022. Subsequently, the margin rebounded notably to 2081.46% in 2023, culminating in a remarkable surge to 9929.53% in 2024. This volatility suggests periods of both contraction and expansion in the value created relative to revenue, with the most recent year reflecting unprecedented value creation efficiency.