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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MVA
Arista Networks Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 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).
2 Invested capital. See details »
The information presents a consistent upward trend across all measured items between 2021 and 2025. The market value of the company demonstrates substantial growth, as does the invested capital. Critically, the Market Value Added (MVA) exhibits a parallel increase, indicating a positive correlation between capital invested and value creation for shareholders.
- Market Value
- The market value experienced growth each year. From US$37.29 million in 2021, it increased to US$170.47 million by 2025, representing a significant cumulative increase. The rate of increase appears to accelerate, particularly between 2022 and 2023, and again between 2023 and 2024.
- Invested Capital
- Invested capital also shows a consistent upward trajectory, rising from US$1.89 million in 2021 to US$7.16 million in 2025. While the absolute increase is smaller than that of the market value, the consistent growth suggests a deliberate and ongoing investment strategy.
- Market Value Added (MVA)
- The MVA demonstrates the most substantial growth in absolute terms, increasing from US$35.40 million in 2021 to US$163.31 million in 2025. This growth closely mirrors the increase in market value, suggesting that the company is effectively deploying capital to generate shareholder value. The increase from 2023 to 2024 is particularly noteworthy, with an addition of approximately US$44.47 million to the MVA.
The consistent and substantial growth in MVA, coupled with the increasing market value and invested capital, suggests a strong financial performance and effective capital allocation strategy over the observed period. The accelerating growth rates in later years warrant further investigation to determine the underlying drivers and sustainability of this performance.
MVA Spread Ratio
Arista Networks Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
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) and Invested Capital figures demonstrate substantial growth over the observed period. Concurrently, the MVA spread ratio exhibits an increasing trend, indicating a widening gap between the wealth created for investors and the capital invested in the business.
- Market Value Added (MVA)
- MVA increased consistently from US$35.397 million in 2021 to US$163.308 million in 2025. The most significant increase occurred between 2022 and 2023, with an addition of approximately US$37.267 million. Growth continued at a strong pace through 2025, adding roughly US$43.602 million to MVA.
- Invested Capital
- Invested capital also increased throughout the period, rising from US$1.890 million in 2021 to US$7.161 million in 2025. While the absolute increase in invested capital is notable, the rate of growth is considerably slower than that of MVA. The largest single-year increase in invested capital was observed between 2021 and 2022, adding US$1.206 million.
- MVA Spread Ratio
- The MVA spread ratio, calculated as MVA divided by Invested Capital, shows a clear upward trajectory. Starting at 1,872.91% in 2021, the ratio decreased to 1,226.33% in 2022 before resuming its upward trend. By 2025, the ratio reached 2,280.58%. This indicates that for every dollar of capital invested, the company generated a significantly larger amount of value for its investors, and this value creation increased over time. The ratio’s increase suggests improving efficiency in capital allocation and/or enhanced profitability.
The consistent growth in MVA, coupled with the increasing MVA spread ratio, suggests the company is effectively deploying capital to generate substantial returns for its shareholders. The disparity between the growth rates of MVA and Invested Capital reinforces this conclusion.
MVA Margin
Arista Networks Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
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) and associated MVA margin exhibit significant growth over the observed period. MVA demonstrates a consistent upward trajectory, while the MVA margin fluctuates but generally increases, indicating improving efficiency in value creation relative to revenue.
- Market Value Added (MVA)
- MVA increased substantially from US$35.397 million in 2021 to US$163.308 million in 2025. The largest absolute increase occurred between 2022 and 2023, with an addition of US$37.267 million. Growth continued at a strong pace through 2024 and 2025, suggesting sustained investor confidence and value creation.
- Adjusted Revenue
- Adjusted revenue also increased consistently throughout the period, rising from US$3.227 million in 2021 to US$11.587 million in 2025. This growth in revenue provides a foundation for the observed increase in MVA, though the MVA growth rate exceeds that of revenue, indicating enhanced value creation beyond simple sales increases.
- MVA Margin
- The MVA margin initially decreased from 1,097.06% in 2021 to 844.93% in 2022. However, it then experienced a recovery, reaching 1,189.41% in 2023 and further increasing to 1,444.26% in 2024. A slight decrease to 1,409.44% is observed in 2025, but the margin remains significantly higher than the 2021 and 2022 levels. This suggests improved efficiency in translating revenue into market-perceived value, despite the minor dip in the final year.
Overall, the period demonstrates a positive trend in both absolute value creation (MVA) and the efficiency with which revenue is converted into that value (MVA margin). The consistent growth in both metrics suggests a strong financial performance and effective value generation strategies.