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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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2012
- Current Ratio since 2012
- Analysis of Revenues
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MVA
ServiceNow Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of ServiceNow
- The market value experienced a decline from 115,714 million USD in 2020 to 89,354 million USD in 2022, showing a downward trend over the first three years. However, there is a notable rebound in the subsequent years, rising significantly to 153,020 million USD in 2023 and further to 203,094 million USD in 2024. This pattern suggests an initial period of market value contraction followed by strong recovery and growth.
- Invested capital
- Invested capital displayed a consistent upward trajectory over the entire period. Starting at 4,325 million USD in 2020, it increased steadily each year, reaching 5,871 million USD in 2021, 6,490 million USD in 2022, 8,131 million USD in 2023, and 9,898 million USD in 2024. This continuous increase indicates ongoing capital investment or asset expansion.
- Market value added (MVA)
- Market value added closely follows the trend of the market value, reflecting the value created beyond the invested capital. It declined from 111,389 million USD in 2020 to 82,864 million USD in 2022, matching the dip observed in market value. Subsequently, MVA demonstrated a robust increase to 144,889 million USD in 2023 and 193,196 million USD in 2024, indicative of enhanced market perception and value creation relative to the invested capital in these years.
MVA Spread Ratio
ServiceNow Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
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 demonstrates notable fluctuations over the analyzed period. Initially, there is a decline from 111,389 million USD at the end of 2020 to 82,864 million USD by the end of 2022. This decrease indicates a reduction in the market's valuation relative to the capital invested. However, a strong recovery and growth phase is evident afterward, with MVA rising markedly to 144,889 million USD in 2023 and reaching 193,196 million USD by the end of 2024, surpassing previous values and reflecting enhanced market confidence and valuation.
- Invested Capital
- Invested capital shows a consistent upward trend throughout the entire period. Starting at 4,325 million USD in 2020, the capital invested increases steadily each year, reaching 9,898 million USD in 2024. This continuous rise indicates ongoing investments and resource allocation that support the company's growth and operational expansion.
- MVA Spread Ratio
- The MVA spread ratio, expressing the relationship between market value added and invested capital as a percentage, reveals a similar pattern to the MVA figures. The ratio sharply decreases from a high of 2,575.52% in 2020 to a low point of 1,276.8% in 2022, indicative of diminishing returns or market valuation efficiency relative to invested capital. Subsequently, it rebounds significantly to 1,781.94% in 2023 and further to 1,951.86% in 2024, suggesting an improvement in the value created over the invested capital and a strengthening economic performance.
MVA Margin
ServiceNow Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
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 MVA shows a fluctuating trend over the five-year period. Starting at 111,389 million US dollars in 2020, it decreased to 105,571 million in 2021 and further declined to 82,864 million in 2022. However, there was a significant recovery in the following years, with MVA rising sharply to 144,889 million in 2023 and continuing its upward trajectory to reach 193,196 million in 2024. This pattern indicates an initial dip followed by robust growth in market value added.
- Adjusted Revenues
- Revenues adjusted for specific factors consistently increased each year. In 2020, adjusted revenues were 5,302 million US dollars, which grew steadily to 6,787 million in 2021 and 8,076 million in 2022. The upward trend continued in 2023 with revenues reaching 10,107 million and further increased to 12,032 million in 2024. This indicates strong and continuous top-line growth over the period analyzed.
- MVA Margin (%)
- The MVA margin displays considerable variation over the years. Beginning at 2,101.04% in 2020, it declined substantially to 1,555.49% in 2021 and further to 1,026.06% in 2022. Following this decline, the margin experienced a noticeable recovery, increasing to 1,433.56% in 2023 and then to 1,605.68% in 2024. Although the margin remained below the 2020 level, the increasing trend from 2022 onwards suggests improving efficiency or market perception relative to revenues during recent years.
- Summary
- Overall, the financial data indicates that after a phase of declining market value added and MVA margin from 2020 through 2022, there has been a strong recovery in these metrics in 2023 and 2024. Adjusted revenues show a consistent upward trend throughout the period, supporting the positive trajectory in market value measures and margin improvements. These trends suggest enhanced financial performance and growing value creation capacity in the latter years examined.