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.
MVA
Take-Two Interactive Software Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial trajectory indicates a substantial expansion in shareholder wealth creation over the analyzed six-year period. The company demonstrated a consistent ability to maintain a market valuation significantly higher than its invested capital, culminating in an accelerating growth phase toward the end of the period.
- Market Value Evolution
- The market valuation exhibited a general upward trend, growing from 15.5 billion US dollars in 2020 to 46.2 billion US dollars by March 31, 2025. Although a contraction occurred in 2022, when the value dipped to 13.7 billion US dollars, this was followed by a period of aggressive growth, with the most significant increase occurring between 2024 and 2025.
- Invested Capital Trends
- Invested capital remained relatively stable from 2020 through 2022 before experiencing a sharp increase to a peak of 14.1 billion US dollars in 2023. Following this peak, a downward trend is observed, with capital decreasing to 10.7 billion US dollars in 2024 and further declining to 7.7 billion US dollars by March 31, 2025. This pattern suggests a period of significant capital investment followed by a phase of capital reduction or optimization.
- Market Value Added (MVA) Analysis
- MVA fluctuated in alignment with market value and invested capital, reaching a period low of 9.5 billion US dollars in 2022. From 2023 onward, a strong recovery is evident, with MVA rising to 38.5 billion US dollars by 2025. The dramatic surge in the final year is driven by the dual impact of a peaking market valuation and a diminishing capital base, indicating an exceptional increase in the value created for shareholders relative to the capital invested in the business.
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MVA Spread Ratio
Take-Two Interactive Software Inc., MVA spread ratio calculation, comparison to benchmarks
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 38,538,916) | 18,538,053) | 12,691,181) | 9,502,227) | 16,523,432) | 12,717,457) | |
| Invested capital2 | 7,701,100) | 10,727,600) | 14,060,600) | 4,181,680) | 3,102,062) | 2,825,883) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 500.43% | 172.81% | 90.26% | 227.23% | 532.66% | 450.03% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Alphabet Inc. | 1,179.37% | 914.11% | 797.59% | 533.88% | 988.84% | — | |
| Comcast Corp. | -12.51% | 4.16% | 34.36% | 23.25% | 50.35% | — | |
| Meta Platforms Inc. | 781.90% | 957.71% | 767.10% | 380.86% | 579.06% | — | |
| Netflix Inc. | 772.38% | 961.89% | 596.80% | 371.80% | 453.21% | — | |
| Walt Disney Co. | 44.73% | 50.39% | 33.59% | 34.30% | 103.57% | 101.22% | |
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 38,538,916 ÷ 7,701,100 = 500.43%
4 Click competitor name to see calculations.
The financial data indicates a period of significant volatility in market value creation and capital structure, culminating in a strong upward trajectory by the end of the observed period. A notable inverse relationship is observed between invested capital and the MVA spread ratio, particularly during the middle of the reporting window.
- Market Value Added (MVA)
- MVA experienced fluctuations between 2020 and 2022, reaching a low of approximately 9.5 billion US dollars in 2022. Following this dip, a consistent and accelerating growth trend emerged. By March 31, 2025, the MVA reached a peak of 38.5 billion US dollars, representing a substantial increase from the 18.5 billion US dollars reported in 2024.
- Invested Capital
- Invested capital remained relatively stable from 2020 through 2022 before experiencing a sharp increase to 14.06 billion US dollars in 2023. This spike suggests a period of significant investment or acquisition. However, this trend reversed in the subsequent two years, with invested capital declining to 7.7 billion US dollars by March 31, 2025.
- MVA Spread Ratio
- The MVA spread ratio exhibited high volatility, starting at 450.03% in 2020 and peaking at 532.66% in 2021. A severe contraction occurred between 2022 and 2023, with the ratio hitting a trough of 90.26% in 2023, coinciding with the peak in invested capital. A rapid recovery followed, with the ratio climbing to 500.43% by March 31, 2025.
The analysis suggests that the substantial increase in the MVA spread ratio in 2025 was driven by the simultaneous growth of the Market Value Added and the reduction of invested capital. This indicates an improved efficiency in generating market value relative to the capital employed in the business.
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MVA Margin
Take-Two Interactive Software Inc., MVA margin calculation, comparison to benchmarks
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 38,538,916) | 18,538,053) | 12,691,181) | 9,502,227) | 16,523,432) | 12,717,457) | |
| Net revenue | 5,633,600) | 5,349,600) | 5,349,900) | 3,504,800) | 3,372,772) | 3,088,970) | |
| Add: Increase (decrease) in deferred revenue | 6,500) | (11,900) | 178,100) | (29,150) | 159,208) | (58,237) | |
| Adjusted net revenue | 5,640,100) | 5,337,700) | 5,528,000) | 3,475,650) | 3,531,980) | 3,030,733) | |
| Performance Ratio | |||||||
| MVA margin2 | 683.30% | 347.30% | 229.58% | 273.39% | 467.82% | 419.62% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Alphabet Inc. | 904.02% | 593.71% | 491.55% | 381.04% | 655.85% | — | |
| Comcast Corp. | -23.47% | 7.21% | 59.40% | 41.05% | 99.16% | — | |
| Meta Platforms Inc. | 839.34% | 965.69% | 802.73% | 332.57% | 454.84% | — | |
| Netflix Inc. | 742.48% | 1,002.09% | 667.66% | 443.55% | 529.22% | — | |
| Walt Disney Co. | 78.29% | 91.70% | 65.59% | 70.59% | 263.91% | 272.21% | |
Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × 38,538,916 ÷ 5,640,100 = 683.30%
3 Click competitor name to see calculations.
An analysis of the financial metrics from March 31, 2020, to March 31, 2025, reveals a period of significant volatility followed by a substantial expansion in market valuation. While adjusted net revenue shows a steady upward trajectory, the market value added (MVA) and the resulting MVA margin have experienced more dramatic fluctuations, culminating in a sharp increase by the end of the period.
- Market Value Added (MVA) Trends
- The MVA exhibited an initial increase, rising from 12.7 billion in 2020 to 16.5 billion in 2021. A notable contraction occurred in 2022, with value dropping to 9.5 billion. However, from 2023 onward, a strong recovery trend emerged, with the MVA climbing to 18.5 billion in 2024 and reaching a peak of 38.5 billion by March 31, 2025. This indicates a significant increase in the premium the market assigns to the company over its capital base.
- Adjusted Net Revenue Growth
- Revenue grew consistently from 3.0 billion in 2020 to 5.6 billion in 2025. The most significant expansion occurred between 2022 and 2023, where revenue increased from 3.5 billion to 5.5 billion. Following this jump, revenue remained relatively stable, fluctuating slightly between 5.3 billion and 5.6 billion through 2025.
- MVA Margin Interpretation
- The MVA margin demonstrated a cyclical pattern, peaking at 467.82% in 2021 before entering a downward trend that reached a trough of 229.58% in 2023. This decline occurred even as revenues increased, suggesting that during this window, operational growth outperformed the growth in market valuation. A sharp reversal followed, with the margin accelerating to 347.30% in 2024 and surging to 683.30% in 2025. The divergence between the relatively stable revenue in the final two years and the skyrocketing MVA margin indicates that the market is pricing in significant future growth expectations that far exceed current realized revenues.
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