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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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
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- Net Profit Margin since 2012
- Current Ratio since 2012
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MVA
ServiceNow Inc., MVA calculation
US$ in millions
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 Fair value of debt. See details »
2 Invested capital. See details »
The market value of the company exhibited considerable fluctuation between 2021 and 2025. Initially decreasing from 2021 to 2022, it experienced substantial growth through 2024 before declining significantly in 2025. Invested capital demonstrated a consistent upward trend throughout the period, with a particularly notable increase between 2024 and 2025. Market value added mirrored the pattern of the market value, decreasing initially, then increasing substantially, and finally declining.
- Market Value Trend
- The market value began at US$111,442 million in 2021, decreased to US$89,358 million in 2022, then rose sharply to US$153,023 million in 2023 and further to US$203,094 million in 2024. A substantial decrease was observed in 2025, with the market value falling to US$118,007 million. This suggests periods of strong investor confidence followed by significant reassessment.
- Invested Capital Trend
- Invested capital increased steadily from US$5,871 million in 2021 to US$16,322 million in 2025. The growth rate appeared to accelerate in the later years, particularly between 2024 and 2025, indicating increased investment in the business. This consistent increase suggests ongoing operational expansion or strategic initiatives requiring capital allocation.
- Market Value Added (MVA) Trend
- MVA followed a similar trajectory to the market value, starting at US$105,571 million in 2021, decreasing to US$82,868 million in 2022, and then increasing to US$144,892 million in 2023 and US$193,196 million in 2024. The value decreased significantly in 2025 to US$101,685 million. The correlation between MVA and market value indicates that changes in the company’s perceived future prospects are strongly reflected in its market valuation.
The substantial decline in both market value and MVA in 2025, despite the continued increase in invested capital, warrants further investigation. This could indicate a shift in market sentiment, increased risk perception, or challenges in translating invested capital into increased shareholder value during that period.
MVA Spread Ratio
ServiceNow Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday 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) exhibited considerable fluctuation between 2021 and 2025. Initial values decreased from 2021 to 2022, followed by substantial increases in subsequent years before declining again in 2025. Invested capital consistently increased throughout the period, though at varying rates. The MVA spread ratio, calculated as MVA divided by Invested Capital, mirrored the volatility of MVA, demonstrating a significant relationship with changes in market valuation relative to capital employed.
- Market Value Added (MVA)
- MVA began at US$105,571 million in 2021, decreasing to US$82,868 million in 2022. A strong recovery followed, with MVA rising to US$144,892 million in 2023 and further increasing to US$193,196 million in 2024. However, MVA experienced a substantial decline in 2025, falling to US$101,685 million. This suggests periods of strong market confidence followed by a significant reassessment of the company’s value.
- Invested Capital
- Invested capital demonstrated a consistent upward trend throughout the five-year period. Starting at US$5,871 million in 2021, it grew to US$6,490 million in 2022, US$8,131 million in 2023, US$9,898 million in 2024, and reached US$16,322 million in 2025. The rate of increase accelerated in the later years, indicating growing capital intensity.
- MVA Spread Ratio
- The MVA spread ratio was exceptionally high throughout the period, indicating a substantial return on invested capital as perceived by the market. The ratio began at 1,798.18% in 2021, decreased to 1,276.86% in 2022, and then increased to 1,781.96% in 2023 and 1,951.86% in 2024. A significant decrease was observed in 2025, with the ratio falling to 622.99%. This decline, while still representing a substantial return, suggests a diminishing premium placed on each dollar of invested capital, coinciding with the decrease in MVA.
The observed fluctuations in MVA and the corresponding changes in the MVA spread ratio warrant further investigation to understand the underlying drivers of market valuation. The consistent growth in invested capital, coupled with the volatile MVA, suggests that the market’s assessment of the company’s ability to generate returns on its capital is subject to change.
MVA Margin
ServiceNow Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday 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 revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited considerable fluctuation between 2021 and 2025. While Adjusted Revenues demonstrated consistent growth throughout the period, the MVA margin experienced notable volatility.
- Market Value Added (MVA)
- The MVA began at US$105,571 million in 2021, decreased to US$82,868 million in 2022, and then increased substantially to US$144,892 million in 2023. Further growth was observed in 2024, reaching US$193,196 million, before declining significantly to US$101,685 million in 2025. This suggests a sensitivity of market valuation to factors beyond revenue growth.
- Adjusted Revenues
- Adjusted Revenues increased steadily from US$6,787 million in 2021 to US$14,798 million in 2025. This represents a consistent upward trajectory, indicating sustained growth in the company’s core business operations. The growth rate appears relatively stable year-over-year.
- MVA Margin
- The MVA margin began at 1,555.49% in 2021, decreased to 1,026.11% in 2022, and then rose to 1,433.58% in 2023. The margin peaked at 1,605.68% in 2024 before experiencing a substantial decline to 687.15% in 2025. The significant decrease in the MVA margin in 2025, despite continued revenue growth, warrants further investigation into potential factors impacting market valuation, such as changes in investor sentiment, competitive pressures, or cost structures.
The divergence between the increasing Adjusted Revenues and the fluctuating MVA, particularly the sharp decline in the MVA margin in the final year, suggests that revenue growth alone does not fully explain the company’s market valuation. External factors and investor expectations likely play a significant role.