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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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Analysis of Debt
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MVA
AT&T 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 »
- Market (fair) value of AT&T
- The market value shows a declining trend from 2020 to 2023, decreasing from approximately 433.5 billion USD to 286.9 billion USD. This represents a significant reduction over the four-year period. However, in 2024, there is a moderate recovery with an increase to around 332.8 billion USD, indicating a possible positive shift in market perception or company performance.
- Invested capital
- The invested capital figures reflect a similar trend to the market value but with some variation. From 2020 to 2021, the amount of invested capital increases from about 412.0 billion USD to 439.2 billion USD, suggesting additional investments or capital allocation during this period. Subsequently, invested capital declines sharply in 2022 to approximately 309.4 billion USD, followed by a slight rebound in 2023 to 326.1 billion USD, and a marginal decrease in 2024 to 314.1 billion USD. This pattern indicates that the company has been actively managing its capital base, potentially through divestitures or asset optimization.
- Market value added (MVA)
- The MVA, representing the difference between market value and invested capital, exhibits considerable volatility. In 2020, the MVA is positive at approximately 21.5 billion USD, indicating that the company's market value exceeded its invested capital. However, from 2021 through 2023, the MVA becomes negative, ranging from -25.9 billion USD to -39.2 billion USD, suggesting that the market valuation was below the invested capital and that there may have been concerns about value creation or operational performance. In 2024, the MVA returns to positive territory at 18.7 billion USD, signaling an improvement in shareholder value or market confidence.
- Overall Trends and Insights
- Over the five-year period, the data reveal an initial decline in both market value and invested capital after 2021, accompanied by a negative MVA, implying challenges in creating market value above the invested capital base. The reversal in 2024, with increases in market value and MVA despite a slight decrease in invested capital, may indicate strategic actions that improved market perception or operational performance. The fluctuations in invested capital suggest active management of capital resources during this period.
MVA Spread Ratio
AT&T 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 | ||||||
| T-Mobile US 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 reveals fluctuating trends over the analyzed periods, with noticeable variations in market value added (MVA), invested capital, and the MVA spread ratio.
- Market Value Added (MVA)
- The MVA experienced significant volatility throughout the observed years. It started with a positive figure of 21,458 million US$ in 2020, then sharply declined into negative territory in the subsequent years, reaching its lowest point of -39,200 million US$ in 2023. In 2024, the MVA rebounded back to a positive value of 18,731 million US$, indicating a recovery in value creation for shareholders after a multi-year period of diminished market value.
- Invested Capital
- Invested capital displayed a general declining trend from 2021 onwards. After peaking at 439,195 million US$ in 2021, it dropped substantially to 309,447 million US$ by 2022, followed by modest fluctuations, declining slightly to 314,065 million US$ by 2024. This reduction suggests either asset disposals, capital efficiency improvements, or divestitures impacting the capital base over the latter years.
- MVA Spread Ratio
- The MVA spread ratio, representing the margin between the return on invested capital and the cost of capital, mirrors the behavior seen in MVA. It was positive at 5.21% in 2020, turned negative in the years 2021 through 2023 with the lowest point at -12.02% in 2023, and recovered strongly to a positive 5.96% in 2024. This trajectory indicates an initial period of value destruction followed by a significant improvement in capital efficiency and profitability relative to cost in the most recent period.
Overall, the data suggests that the entity underwent a challenging phase characterized by negative market value added and poor returns on invested capital relative to its cost, culminating in 2023. However, the recovery observed in 2024 across all key measures points to improved operational or financial performance leading to enhanced shareholder value and capital deployment effectiveness.
MVA Margin
AT&T 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 | ||||||
| Operating revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| T-Mobile US 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 ÷ Operating revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA showed significant volatility across the analyzed period, starting with a positive value of 21,458 million US dollars at the end of 2020. However, it sharply declined to negative figures in the subsequent years, reaching -25,980 million in 2021 and -18,448 million in 2022. The downward trend worsened by the end of 2023, with MVA dropping further to -39,200 million US dollars. Notably, there was a strong recovery by the end of 2024, pushing MVA back to a positive 18,731 million.
- Operating Revenues
- Operating revenues exhibited a declining trend from 2020 through 2022, starting at 171,760 million US dollars and dropping notably to 120,741 million by the end of 2022. Revenues then stabilized somewhat during 2023 and 2024, maintaining levels close to 122,000 million US dollars. This suggests a period of contraction followed by stabilization in revenue generation.
- MVA Margin
- The MVA margin mirrored the pattern seen in the MVA figures, starting at a positive 12.49% in 2020 and turning negative in 2021 at -15.39%. It remained negative and relatively stable between 2021 and 2022, then dropped significantly to -32.02% in 2023. By the end of 2024, the margin rebounded sharply to 15.31%, indicating improved profitability or market valuation relative to revenues.
- Overall Analysis
- The data reveals a challenging financial period from 2021 to 2023, characterized by declining operating revenues and significantly negative market value added along with a corresponding drop in MVA margins. The sharp improvement in MVA and MVA margin in 2024, despite relatively stable operating revenues, may indicate effective strategic actions, cost management, or favorable market conditions restoring value. The stabilization of operating revenues after 2022 suggests the company reached a new equilibrium, with future growth potentially dependent on external factors or internal operational improvements.