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
International Business Machines Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | International Business Machines Corp. market (fair) value less invested capital. | International Business Machines Corp. MVA decreased from 2018 to 2019 and from 2019 to 2020. |
MVA Spread Ratio
International Business Machines Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 50,923 | 63,942 | 64,952 | 90,418 | 113,286 | |
| Invested capital2 | 130,176 | 133,824 | 110,894 | 108,645 | 106,417 | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 39.12% | 47.78% | 58.57% | 83.22% | 106.46% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | 550.21% | 505.40% | 481.52% | 496.80% | 458.38% | |
| Adobe Inc. | 1,082.99% | 884.94% | 680.30% | 847.52% | 542.38% | |
| Autodesk Inc. | 538.60% | 712.11% | 829.14% | 459.75% | 263.98% | |
| Automatic Data Processing Inc. | 531.71% | 696.65% | 740.57% | 591.35% | 448.71% | |
| Fidelity National Information Services Inc. | 41.03% | 56.84% | 98.71% | 84.96% | 59.41% | |
| Fiserv Inc. | 69.66% | 58.87% | 299.38% | 277.55% | 238.19% | |
| Intuit Inc. | 976.09% | 1,553.30% | 1,330.67% | 1,158.20% | 988.58% | |
| Mastercard Inc. | 1,680.77% | 2,296.30% | 1,961.07% | 1,816.28% | 1,100.32% | |
| Microsoft Corp. | 1,347.87% | 983.69% | 879.73% | 560.71% | 681.54% | |
| Oracle Corp. | 180.84% | 220.64% | 167.48% | 189.67% | 172.38% | |
| PayPal Holdings Inc. | 977.63% | 556.21% | 514.02% | 425.37% | 204.40% | |
| salesforce.com inc. | 226.77% | 326.09% | 401.75% | 263.57% | 333.61% | |
| ServiceNow Inc. | 2,570.21% | 2,187.92% | 1,589.74% | 1,417.41% | 1,067.59% | |
| Visa Inc. | 665.77% | 695.79% | 581.94% | 426.48% | 323.60% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 50,923 ÷ 130,176 = 39.12%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | International Business Machines Corp. MVA spread ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
MVA Margin
International Business Machines Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 50,923 | 63,942 | 64,952 | 90,418 | 113,286 | |
| Revenue | 73,620 | 77,147 | 79,591 | 79,139 | 79,919 | |
| Add: Increase (decrease) in deferred income | 1,257 | 1,267 | (688) | 663 | (157) | |
| Adjusted revenue | 74,877 | 78,414 | 78,903 | 79,802 | 79,762 | |
| Performance Ratio | ||||||
| MVA margin2 | 68.01% | 81.54% | 82.32% | 113.30% | 142.03% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | 279.96% | 233.58% | 202.17% | 213.12% | 181.64% | |
| Adobe Inc. | 1,554.19% | 1,330.31% | 1,114.60% | 1,105.25% | 703.93% | |
| Autodesk Inc. | 711.47% | 1,160.93% | 1,207.04% | 685.72% | 332.89% | |
| Automatic Data Processing Inc. | 350.03% | 466.85% | 405.73% | 358.91% | 304.06% | |
| Fidelity National Information Services Inc. | 243.93% | 412.48% | 262.79% | 210.28% | 154.14% | |
| Fiserv Inc. | 280.56% | 355.04% | 523.93% | 442.97% | 379.83% | |
| Intuit Inc. | 1,098.60% | 1,034.92% | 884.25% | 643.71% | 558.71% | |
| Mastercard Inc. | 2,159.18% | 1,992.62% | 1,467.79% | 1,407.06% | 1,039.07% | |
| Microsoft Corp. | 976.86% | 711.95% | 612.04% | 442.48% | 356.91% | |
| Oracle Corp. | 411.93% | 401.82% | 302.52% | 389.03% | 298.85% | |
| PayPal Holdings Inc. | 1,378.91% | 697.17% | 591.48% | 570.26% | 309.16% | |
| salesforce.com inc. | 558.41% | 642.42% | 643.77% | 473.14% | 500.78% | |
| ServiceNow Inc. | 2,100.88% | 1,606.76% | 1,344.55% | 1,143.86% | 801.72% | |
| Visa Inc. | 1,874.98% | 1,543.59% | 1,343.46% | 1,186.67% | 1,012.98% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 MVA. See details »
2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 50,923 ÷ 74,877 = 68.01%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | International Business Machines Corp. MVA margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |