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
Fair Isaac Corp., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of Market Value Added (MVA) indicates a period of relative stability followed by an exponential increase in shareholder value creation. From 2019 to 2022, the MVA exhibited moderate fluctuations, but experienced a sharp upward trajectory starting in 2023, culminating in a significant peak by September 30, 2024.
- Market Valuation Trends
- The market value grew from US$ 10.55 billion in 2019 to US$ 53.08 billion in 2024. While a temporary decline was observed in 2021, the valuation accelerated aggressively in the final two years of the period, more than doubling between 2022 and 2023, and then doubling again by 2024.
- Invested Capital Stability
- Invested capital remained remarkably consistent throughout the six-year duration, fluctuating within a narrow range between US$ 1.33 billion and US$ 1.45 billion. This stability indicates that the expansion in market value was not the result of increased capital infusions or aggressive physical expansion.
- MVA Expansion and Capital Efficiency
- MVA increased from US$ 9.14 billion in 2019 to US$ 51.67 billion in 2024. The widening gap between the stagnant invested capital and the surging market value suggests a substantial increase in the market's perception of the company's ability to generate future cash flows and a high degree of efficiency in utilizing its existing capital base.
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MVA Spread Ratio
Fair Isaac Corp., MVA spread ratio calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 51,666,585) | 23,639,530) | 11,505,581) | 10,633,576) | 12,961,673) | 9,143,600) | |
| Invested capital2 | 1,416,757) | 1,372,115) | 1,329,445) | 1,370,014) | 1,445,030) | 1,401,400) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 3,646.82% | 1,722.85% | 865.44% | 776.17% | 896.98% | 652.46% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | 524.20% | 487.90% | 442.58% | 739.74% | — | — | |
| Adobe Inc. | 642.58% | 991.60% | 658.07% | 1,033.13% | 1,082.99% | — | |
| AppLovin Corp. | 2,384.14% | 420.90% | 60.64% | 260.37% | — | — | |
| Cadence Design Systems Inc. | 910.94% | 1,934.83% | 1,302.22% | 1,110.87% | — | — | |
| Datadog Inc. | 1,526.17% | 2,743.24% | 1,772.59% | 5,219.74% | — | — | |
| International Business Machines Corp. | 162.99% | 100.96% | 60.62% | 55.46% | — | — | |
| Intuit Inc. | 624.57% | 573.60% | 406.80% | 1,175.12% | — | — | |
| Microsoft Corp. | 803.69% | 892.49% | 956.02% | 1,383.21% | — | — | |
| Oracle Corp. | 370.24% | 324.04% | 224.95% | 260.27% | — | — | |
| Palantir Technologies Inc. | 11,445.95% | 3,878.69% | 488.89% | 829.78% | — | — | |
| Palo Alto Networks Inc. | 894.07% | 731.80% | 559.30% | 573.51% | — | — | |
| Salesforce Inc. | 256.86% | 127.88% | 150.31% | 270.75% | — | — | |
| ServiceNow Inc. | 1,951.86% | 1,781.96% | 1,276.86% | 1,798.18% | — | — | |
| Synopsys Inc. | 645.36% | 973.25% | 565.55% | 707.79% | 468.10% | — | |
| Workday Inc. | 677.38% | 471.48% | 655.74% | 908.31% | — | — | |
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 51,666,585 ÷ 1,416,757 = 3,646.82%
4 Click competitor name to see calculations.
The financial trajectory from September 30, 2019, to September 30, 2024, is characterized by an exponential increase in market value added relative to a remarkably stable base of invested capital. This divergence indicates a significant acceleration in the company's ability to create shareholder value far beyond the capital contributed to the business.
- Market Value Added (MVA)
- A substantial upward trend is observed in MVA, which grew from approximately 9.14 billion USD in 2019 to over 51.67 billion USD by 2024. While a slight contraction occurred in 2021, followed by a period of stabilization in 2022, the subsequent two years saw an aggressive expansion. The MVA more than doubled between 2022 and 2023, and further than doubled again by 2024, reflecting an immense increase in the market's valuation of the firm's future growth prospects and intangible assets.
- Invested Capital
- Invested capital remained consistently stable throughout the six-year period, fluctuating within a narrow range between 1.33 billion USD and 1.45 billion USD. This stability suggests that the massive growth in market value was not driven by an increase in the capital base or significant new injections of funding, but rather by the increasing efficiency and profitability of the existing assets.
- MVA Spread Ratio
- The MVA spread ratio exhibits a trajectory that mirrors the MVA growth due to the static nature of the invested capital. Starting at 652.46% in 2019, the ratio experienced a period of volatility between 2020 and 2022, remaining below 900%. However, a sharp inflection point occurred in 2023, where the ratio surged to 1,722.85%, and reached a peak of 3,646.82% by September 30, 2024. This extreme expansion of the spread ratio signifies that the market value added is now more than 36 times the amount of capital invested in the company, indicating an exceptional level of value creation efficiency.
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MVA Margin
Fair Isaac Corp., MVA margin calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 51,666,585) | 23,639,530) | 11,505,581) | 10,633,576) | 12,961,673) | 9,143,600) | |
| Revenues | 1,717,526) | 1,513,557) | 1,377,270) | 1,316,536) | 1,294,562) | 1,160,083) | |
| Add: Increase (decrease) in deferred revenue | 16,974) | 16,675) | 15,797) | (11,378) | 5,821) | 8,202) | |
| Adjusted revenues | 1,734,500) | 1,530,232) | 1,393,067) | 1,305,158) | 1,300,383) | 1,168,285) | |
| Performance Ratio | |||||||
| MVA margin2 | 2,978.76% | 1,544.83% | 825.92% | 814.73% | 996.76% | 782.65% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Accenture PLC | 297.40% | 251.01% | 213.17% | 379.26% | — | — | |
| Adobe Inc. | 727.86% | 1,241.42% | 766.46% | 1,287.44% | 1,554.19% | — | |
| AppLovin Corp. | 2,302.25% | 576.21% | 113.54% | 521.30% | — | — | |
| Cadence Design Systems Inc. | 1,395.62% | 1,927.61% | 1,299.21% | 1,128.47% | — | — | |
| Datadog Inc. | 1,385.47% | 1,715.05% | 1,226.04% | 4,145.45% | — | — | |
| International Business Machines Corp. | 288.07% | 179.79% | 105.00% | 105.45% | — | — | |
| Intuit Inc. | 959.77% | 939.31% | 782.89% | 1,489.94% | — | — | |
| Microsoft Corp. | 1,123.50% | 1,016.40% | 916.17% | 1,148.11% | — | — | |
| Oracle Corp. | 704.48% | 626.94% | 412.88% | 514.72% | — | — | |
| Palantir Technologies Inc. | 9,929.53% | 2,081.46% | 820.15% | 1,366.76% | — | — | |
| Palo Alto Networks Inc. | 949.23% | 726.58% | 651.61% | 771.73% | — | — | |
| Salesforce Inc. | 593.57% | 323.34% | 417.33% | 620.94% | — | — | |
| ServiceNow Inc. | 1,605.68% | 1,433.58% | 1,026.11% | 1,555.49% | — | — | |
| Synopsys Inc. | 1,081.63% | 1,373.41% | 796.87% | 1,126.17% | 803.94% | — | |
| Workday Inc. | 754.19% | 578.30% | 888.92% | 1,185.07% | — | — | |
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 51,666,585 ÷ 1,734,500 = 2,978.76%
3 Click competitor name to see calculations.
The financial trajectory from 2019 to 2024 is characterized by an exponential increase in market value relative to a steady, linear growth in operational revenue. While revenues followed a consistent upward path, the market valuation experienced a dramatic acceleration, particularly in the final two fiscal years of the period.
- Market Value Added (MVA) Trends
- MVA rose from 9.14 billion USD in 2019 to 51.67 billion USD in 2024. After a period of relative volatility between 2020 and 2022, where values fluctuated between 10.63 billion and 12.96 billion USD, a significant surge occurred starting in 2023. The increase from 2022 to 2024 represents a more than fourfold growth in the market's valuation of the entity above its invested capital.
- Adjusted Revenue Performance
- Revenues exhibited a stable growth pattern, increasing from 1.17 billion USD in 2019 to 1.73 billion USD in 2024. This steady progression contrasts sharply with the aggressive growth seen in the market value metrics, indicating that the surge in MVA is not primarily driven by immediate top-line revenue expansion, but rather by other market-driven factors.
- MVA Margin Dynamics
- The MVA margin expanded from 782.65% in 2019 to 2,978.76% in 2024. A temporary contraction was observed in 2021, where the margin declined to 814.73% from a 2020 peak of 996.76%. Following 2022, the margin accelerated rapidly, moving from 825.92% to nearly 3,000% by 2024. This significant expansion reflects an increasing market premium attributed to the company, suggesting heightened investor confidence in future earnings potential or the intrinsic value of its intangible assets.
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