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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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2013
- Current Ratio since 2013
- Price to Book Value (P/BV) since 2013
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MVA
T-Mobile US Inc., MVA calculation
US$ in millions
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 »
The analysis of the financial data over the five-year period reveals several critical trends with respect to the market value, invested capital, and market value added for the entity in question.
- Market (fair) value
- The market value shows a consistent upward trend from 259,461 million US dollars in 2020 to 370,154 million US dollars in 2024. This represents a substantial increase, particularly notable in the final year, where the growth from 296,718 million to 370,154 million US dollars signifies a robust appreciation in market perception and valuation.
- Invested capital
- The invested capital exhibits a relatively stable pattern throughout the period, increasing slightly from 177,902 million US dollars in 2020 to 187,599 million US dollars in 2024. The increments are marginal, indicating a controlled or conservative approach to capital expenditure or investments over these years.
- Market value added (MVA)
- This metric demonstrates a strong positive trajectory, growing from 81,559 million US dollars in 2020 to an impressive 182,555 million US dollars in 2024. The increase is especially pronounced in the last two years, with a significant jump from 93,702 million to 182,555 million in just two years, suggesting enhanced effectiveness in utilizing invested capital to generate shareholder value.
In summary, the data indicates sustained growth in market valuation and substantial improvement in value addition relative to the invested capital. Despite only marginal increases in invested capital, the company has successfully expanded its market value, reflecting increased investor confidence and possibly improved financial performance or strategic positioning in the market during the analyzed timeframe.
MVA Spread Ratio
T-Mobile US 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications 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.
The financial data reflects significant changes and trends over the five-year period from December 31, 2020, to December 31, 2024. The analysis reveals insights into the company's market value performance relative to its invested capital.
- Market Value Added (MVA)
- The Market Value Added shows a steady increase over the years, starting from US$81,559 million in 2020 and rising to US$182,555 million in 2024. This represents a substantial growth, more than doubling the value within the observed period, indicating improved market perception and value creation for shareholders.
- Invested Capital
- The invested capital remains relatively stable over the period, with a slight upward trend from US$177,902 million in 2020 to US$187,599 million in 2024. The minor increments indicate controlled capital expenditure or investments, suggesting efficient use of capital resources without aggressive expansion.
- MVA Spread Ratio
- The MVA spread ratio exhibits notable improvement throughout the period, increasing from 45.84% in 2020 to a pronounced 97.31% in 2024. This ratio reflects the value added over the cost of capital, suggesting that the company consistently enhanced its ability to generate returns exceeding the cost of invested capital. The sharp rise in the final year highlights a significant acceleration in value creation capability.
Overall, the trends suggest a company that is efficiently managing its invested capital while substantially increasing its market value, resulting in a rapidly rising MVA spread ratio. This pattern indicates strong performance in value generation and potential competitive advantage over the analyzed period.
MVA Margin
T-Mobile US Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AT&T Inc. | ||||||
| Verizon Communications 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 revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited an overall upward trend during the analyzed period. Beginning at $81,559 million in 2020, MVA remained relatively stable through 2021 with a marginal increase to $81,628 million. A notable increase occurred in 2022, rising to $93,702 million, followed by a more pronounced growth in 2023 reaching $110,460 million. The most significant increase was observed in 2024 with MVA surging to $182,555 million, indicating substantial enhancement in market value.
- Adjusted Revenues
- Adjusted revenues showed moderate fluctuations over the years. Starting at $68,796 million in 2020, revenues increased considerably to $79,944 million in 2021. However, there was a slight decline in 2022 and 2023, with revenues of $79,495 million and $78,603 million respectively, suggesting a brief period of stabilization or minor contraction. In 2024, revenues rebounded to $81,797 million, surpassing previous levels and pointing to renewed growth momentum.
- MVA Margin
- The MVA margin demonstrated considerable volatility, reflecting shifts in the company's value creation efficiency relative to revenues. The margin started at 118.55% in 2020 and decreased to 102.11% in 2021, implying reduced relative market value generation despite higher revenues. It rebounded to 117.87% in 2022 and increased markedly to 140.53% in 2023, showing improved market value creation. The margin peaked dramatically at 223.18% in 2024, indicating a substantial amplification in market value addition relative to revenues, likely driven by the significant MVA growth that year.