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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
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MVA
Qualcomm Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data over the analyzed periods demonstrates notable changes in the company's market valuation and invested capital.
- Market (fair) value
- The market value increased from US$113,531 million in 2019 to a peak of US$167,854 million in 2021. Following this, there was a decline to US$135,516 million in 2023, before rising sharply to US$201,847 million in 2024. This indicates significant volatility with an overall upward trend by the end of the period.
- Invested capital
- Invested capital displayed a different pattern, decreasing from US$21,089 million in 2019 to US$17,459 million in 2020. It then rose steadily through subsequent years to reach US$31,387 million in 2023, with a slight decrease to US$30,887 million in 2024. The general movement suggests an increase in capital investment over the long term.
- Market Value Added (MVA)
- The MVA reflected similar trends to market value, increasing from US$92,441 million in 2019 to US$147,851 million in 2021. Afterwards, it declined to US$104,133 million in 2023 and then significantly increased to US$170,960 million in 2024. This mirrors the fluctuations observed in market value and indicates changing perceptions of the company's value relative to its invested capital.
In summary, the data reveals a company experiencing fluctuations in market valuation and value creation, with invested capital generally increasing. The strong rise in market value and MVA in the latest period signals regained investor confidence and potentially improved performance or outlook.
MVA Spread Ratio
Qualcomm Inc., MVA spread ratio calculation, comparison to benchmarks
| Sep 29, 2024 | Sep 24, 2023 | Sep 25, 2022 | Sep 26, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Texas Instruments Inc. | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
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.
The financial data presents several key trends regarding market value added (MVA), invested capital, and the MVA spread ratio over a six-year period.
- Market Value Added (MVA)
- The MVA shows significant fluctuations throughout the period. Initially, it increased sharply from 92,441 million USD in 2019 to 142,369 million USD in 2020 and further to 147,851 million USD in 2021. Subsequently, there was a notable decline to 108,548 million USD in 2022 and a slight further decrease to 104,133 million USD in 2023. However, in 2024, the MVA rebounded strongly, reaching the highest level in the series at 170,960 million USD.
- Invested Capital
- Invested capital displayed a downward trend in the early years, decreasing from 21,089 million USD in 2019 to 17,459 million USD in 2020. It then recovered and increased consistently to 20,003 million USD in 2021 and continued rising markedly through 2022 and 2023, reaching 31,383 million USD. In 2024, there was a slight reduction to 30,887 million USD, indicating a stabilization after rapid growth.
- MVA Spread Ratio
- The MVA spread ratio, which measures the relationship between market value added and invested capital, exhibited considerable variation. It peaked notably in 2020 at 815.45%, nearly doubling from 438.33% in 2019. Following this peak, the ratio declined steadily over the next two years to 372.61% in 2022 and further to 331.81% in 2023. In 2024, the ratio rose again to 553.5%, suggesting an improvement in value creation relative to invested capital after the previous declines.
Overall, the data indicates a pattern of strong initial growth in value creation and market perception up to 2021, followed by a period of decline in market value added and efficiency ratios. The increase in invested capital during the later years likely supported the rebound in MVA and the MVA spread ratio in 2024, signifying a recovery phase with improved returns on invested capital.
MVA Margin
Qualcomm Inc., MVA margin calculation, comparison to benchmarks
| Sep 29, 2024 | Sep 24, 2023 | Sep 25, 2022 | Sep 26, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Revenues | |||||||
| Add: Increase (decrease) in unearned revenues | |||||||
| Adjusted revenues | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Texas Instruments Inc. | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrates a generally increasing trend over the six-year period, with notable fluctuations. Starting at 92,441 million USD in 2019, it rose sharply in 2020 to 142,369 million USD and further increased slightly to 147,851 million USD in 2021. Subsequently, it declined to 108,548 million USD in 2022 and further to 104,133 million USD in 2023. However, in 2024, the MVA rebounded strongly to 170,960 million USD, marking the highest value within the observed timeframe.
- Adjusted Revenues
- Adjusted revenues exhibit overall growth but with considerable variability. After a slight decrease from 23,878 million USD in 2019 to 23,135 million USD in 2020, revenues increased significantly to 33,213 million USD in 2021 and further to 43,737 million USD in 2022. Revenues then declined to 35,699 million USD in 2023 before rising again to 38,955 million USD in 2024. The pattern indicates a positive growth trajectory with intermittent declines.
- MVA Margin
- The MVA margin, representing the ratio of market value added to adjusted revenues, fluctuates substantially throughout the period. It peaked at 615.38% in 2020, indicating a high return relative to revenues during that year. This was followed by a decline to 445.16% in 2021 and a more pronounced drop to 248.18% in 2022. The margin recovered partially to 291.7% in 2023 and increased further to 438.87% in 2024, pointing to enhanced value creation relative to revenues in recent years after a mid-period trough.