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
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
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MVA
Synopsys Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The market value of the company demonstrates significant fluctuation over the observed period. Initial growth from 2020 to 2021 is followed by a decline in 2022, then substantial recovery and continued growth through 2025. Invested capital exhibits a consistent upward trend until 2025, where a considerable increase is noted. Market value added (MVA) mirrors the pattern of the market value, with initial gains, a dip in 2022, and subsequent recovery, though it does not maintain the same growth trajectory as the overall market value in the later years.
- Market Value Trend
- The market value increased notably from US$37.82 million in 2020 to US$56.10 million in 2021, representing a substantial gain. A decrease to US$51.51 million occurred in 2022. However, a strong recovery was observed in 2023, reaching US$86.76 million, followed by a slight decline to US$76.82 million in 2024. The market value then increased again to US$106.48 million in 2025.
- Invested Capital Trend
- Invested capital steadily increased from US$6.66 million in 2020 to US$8.08 million in 2023. A significant jump to US$10.31 million occurred in 2024, and a substantial increase to US$46.39 million was recorded in 2025. This suggests a considerable expansion of capital employed in the most recent year.
- Market Value Added (MVA) Trend
- MVA followed a similar pattern to market value, rising from US$31.16 million in 2020 to US$49.16 million in 2021. It decreased to US$43.77 million in 2022 before recovering to US$78.68 million in 2023. MVA decreased to US$66.52 million in 2024 and then decreased further to US$60.09 million in 2025. While positive throughout the period, the rate of MVA growth slowed in the later years despite the increasing market value.
The divergence between the growth in market value and MVA in 2024 and 2025, coupled with the substantial increase in invested capital in 2025, warrants further investigation. The significant rise in invested capital may be outpacing the corresponding increase in MVA, potentially indicating diminishing returns on invested capital or a shift in investment strategy.
MVA Spread Ratio
Synopsys Inc., MVA spread ratio calculation, comparison to benchmarks
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| AppLovin Corp. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Workday Inc. | |||||||
Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31).
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 Market Value Added (MVA) exhibited substantial fluctuations over the observed period. Initially, MVA increased significantly from 2020 to 2021, followed by a decrease in 2022, and then a strong resurgence in 2023. Subsequent years, 2024 and 2025, show a decline in MVA, although remaining above the 2022 level.
- MVA Trend
- From 2020 to 2021, MVA nearly doubled, increasing from US$31.16 million to US$49.16 million. A subsequent decline of approximately 11% occurred between 2021 and 2022, bringing MVA to US$43.77 million. The most dramatic increase occurred between 2022 and 2023, with MVA rising to US$78.68 million, representing a growth of approximately 80%. A decrease is then observed in 2024 to US$66.52 million, and a further decrease in 2025 to US$60.09 million.
- Invested Capital Trend
- Invested capital demonstrated a consistent upward trend from 2020 through 2024. From US$6.66 million in 2020, it increased to US$10.31 million in 2024. However, a substantial increase is noted in 2025, reaching US$46.39 million. This represents a significant shift in the level of capital employed.
- MVA Spread Ratio Analysis
- The MVA spread ratio initially increased sharply from 468.10% in 2020 to 707.79% in 2021, mirroring the increase in MVA. It then decreased to 565.55% in 2022, before experiencing a substantial increase to 973.25% in 2023. The ratio decreased significantly in both 2024 (645.36%) and 2025 (129.53%). The dramatic decline in 2025 coincides with the substantial increase in invested capital, suggesting that the returns generated from the invested capital are diminishing relative to the capital employed.
- The high values of the MVA spread ratio in 2021 and 2023 indicate that the market value created significantly exceeded the capital invested. However, the decreasing trend in the ratio, particularly the sharp drop in 2025, warrants further investigation to understand the underlying drivers of this change.
The relationship between MVA and invested capital suggests a changing dynamic. While MVA initially grew at a faster rate than invested capital, the recent increase in invested capital, coupled with the declining MVA spread ratio, indicates a potential shift in the company’s value creation efficiency.
MVA Margin
Synopsys Inc., MVA margin calculation, comparison to benchmarks
| Oct 31, 2025 | Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | |||||||
| AppLovin Corp. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Datadog Inc. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Workday Inc. | |||||||
Based on: 10-K (reporting date: 2025-10-31), 10-K (reporting date: 2024-10-31), 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31).
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 fluctuation over the observed period. Initially, MVA increased significantly from 2020 to 2021, followed by a decrease in 2022, and then a strong recovery in 2023. Subsequent years, 2024 and 2025, show a decline in MVA, though remaining above the 2022 level.
- MVA Trend
- MVA increased from US$31.16 million in 2020 to US$49.16 million in 2021, representing a growth of 57.78%. A subsequent decrease of 11.03% brought MVA down to US$43.77 million in 2022. The most substantial increase occurred between 2022 and 2023, with MVA reaching US$78.68 million, a growth of 79.81%. A decline of 15.36% was observed in 2024, reducing MVA to US$66.52 million, and a further decrease of 8.38% resulted in US$60.09 million in 2025.
- Adjusted Revenue Trend
- Adjusted revenue demonstrated a consistent upward trend throughout the period. From US$3.88 million in 2020, it increased to US$4.37 million in 2021, US$5.49 million in 2022, and US$5.73 million in 2023. The rate of growth accelerated in 2024 and 2025, reaching US$6.15 million and US$7.95 million respectively.
- MVA Margin Analysis
- The MVA margin initially rose from 803.94% in 2020 to a peak of 1,126.17% in 2021, mirroring the increase in MVA. It then decreased to 796.87% in 2022, before experiencing a significant jump to 1,373.41% in 2023. The margin subsequently declined in both 2024 (to 1,081.63%) and 2025 (to 755.81%), indicating that while MVA decreased in absolute terms, the rate of MVA creation relative to revenue also diminished. The 2025 margin represents the lowest value observed during the analyzed period.
The relationship between MVA and adjusted revenue suggests that changes in revenue do not fully explain the fluctuations in MVA. The substantial increase in MVA margin in 2023, despite a relatively modest increase in adjusted revenue, indicates a potentially significant shift in market perception or operational efficiency during that year. The subsequent decline in both MVA and MVA margin in 2024 and 2025 warrants further investigation.