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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- Analysis of Solvency Ratios
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- Price to FCFE (P/FCFE)
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MVA
Accenture PLC, MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Accenture
- The market value demonstrated a general upward trajectory over the six-year period. Beginning at approximately $121.7 billion in 2019, it increased steadily to about $148.6 billion in 2020, followed by a significant surge to $220.2 billion in 2021. In 2022, a decline to around $161.7 billion was observed, yet the value rebounded in subsequent years, reaching $195.0 billion in 2023 and peaking at $230.7 billion in 2024. This pattern indicates overall strong investor confidence with some volatility during the mid-period.
- Invested capital
- Invested capital has shown consistent growth across all years analyzed. Starting at approximately $20.1 billion in 2019, the invested capital steadily increased each year, reaching $22.8 billion in 2020, $26.2 billion in 2021, $29.8 billion in 2022, $33.2 billion in 2023, and culminating at $37.0 billion in 2024. The consistent rise reflects ongoing reinvestment into the company's assets and operations.
- Market value added (MVA)
- Market value added experienced trends similar to the market value. Beginning at roughly $101.6 billion in 2019, MVA increased progressively to $125.7 billion in 2020 and surged to $193.9 billion in 2021. It then decreased to $131.9 billion in 2022, before climbing back to $161.9 billion in 2023 and $193.8 billion in 2024. The fluctuations mirror shifts in market valuation relative to invested capital, illustrating changing investor perceptions of the company's future earnings potential.
- Overall analysis
- Over the analyzed period, both the market value and market value added show significant growth, despite a noticeable dip in 2022. The invested capital's gradual increase suggests steady expansion and investment activities. The temporary decline in market value and MVA in 2022 may indicate external market conditions or company-specific events impacting investor sentiment. The subsequent recovery indicates regained confidence and positive market outlook by 2023 and 2024.
MVA Spread Ratio
Accenture PLC, MVA spread ratio calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
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.
- Market Value Added (MVA)
- The Market Value Added exhibited a fluctuating but generally upward trend over the analyzed periods. Starting from approximately 101.6 billion US dollars in 2019, it increased notably to around 193.9 billion by 2021. A decline was observed in 2022, dropping to roughly 131.9 billion, followed by a recovery in the subsequent years, reaching approximately 193.8 billion in 2024, nearly matching the 2021 peak.
- Invested Capital
- Invested capital showed a consistent upward trajectory across all periods. It rose steadily from about 20.1 billion US dollars in 2019 to nearly 37 billion in 2024. This steady increase reflects ongoing capital investment or asset growth within the company during these years.
- MVA Spread Ratio
- The MVA spread ratio, which represents the market value added relative to invested capital as a percentage, demonstrated variability. The ratio increased from 505.4% in 2019 to a peak of 739.74% in 2021. This was followed by a significant drop to 442.58% in 2022, then a moderate recovery to 524.2% by 2024. Despite fluctuations, the ratio consistently remained above 400%, indicating the market's strong premium over the invested capital throughout the periods.
- Overall Insights
- The data indicates strong performance in market value creation relative to invested capital, particularly highlighted by the peaks in 2021. The temporary dip in 2022 across both MVA and MVA spread ratio suggests a period of market or operational challenges. However, the subsequent recovery in 2023 and 2024 reflects resilience and renewed market confidence. The continuous increase in invested capital alongside the fluctuating high MVA and spread ratios suggests effective deployment of capital with periods of varying market valuation impacts.
MVA Margin
Accenture PLC, MVA margin calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Revenues | |||||||
| Add: Increase (decrease) in deferred revenues | |||||||
| Adjusted revenues | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
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 shows a generally upward trend over the six-year period. Starting at approximately 101.6 billion US dollars in 2019, it increased significantly to nearly 194 billion US dollars by 2021. A notable decline occurred in 2022, dropping to about 131.9 billion, but this was followed by a recovery in the subsequent two years, with MVA reaching roughly 193.8 billion US dollars in 2024. This pattern indicates strong value creation overall, with a temporary setback in 2022 before rebounding.
- Adjusted Revenues
- Adjusted revenues display consistent growth throughout the period. Beginning at approximately 43.5 billion US dollars in 2019, revenues rose steadily each year, reaching over 65.1 billion US dollars by 2024. The most pronounced increase occurred between 2021 and 2022, where revenues jumped by over 10 billion US dollars, indicating a significant expansion in business operations or sales volume during that year.
- MVA Margin
- The MVA margin shows more volatility compared to other metrics. It rose from 233.58% in 2019 to a peak of 379.26% in 2021, indicating increased efficiency or value generation relative to revenues. However, the margin sharply fell to 213.17% in 2022, coinciding with the drop in MVA, before improving again to 297.4% by 2024. Despite fluctuations, the margin remained substantially above its 2019 level, signaling robust value creation relative to revenue over time.
- Overall Insights
- The data reveals a strong upward trajectory in both market value and revenue, albeit with some volatility around 2022. The temporary decline in market value and MVA margin during this period suggests external or internal challenges impacting value creation despite continued revenue growth. The subsequent recovery highlights resilience and effective management in enhancing shareholder value post-2022. Consistent revenue growth combined with fluctuating yet strong MVA margins suggests the company maintains a focus on both top-line expansion and value efficiency.