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
Alphabet 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 period under review demonstrates significant fluctuations in market value and, consequently, market value added. Initial observations reveal a decrease in both market value and invested capital between 2021 and 2022, followed by periods of recovery and substantial growth through 2025.
- Market Value
- The market value experienced a considerable decline from US$1,866,364 million in 2021 to US$1,282,690 million in 2022, representing a substantial contraction. However, a recovery commenced in 2023, with the value increasing to US$1,703,428 million. This upward trajectory continued through 2024 (US$2,311,691 million) and accelerated significantly in 2025, reaching US$3,976,017 million. This indicates a strong positive shift in investor perception and/or underlying business performance in the latter years of the period.
- Invested Capital
- Invested capital increased from US$171,408 million in 2021 to US$202,355 million in 2022. A subsequent decrease was observed in 2023, falling to US$189,779 million. Further growth occurred in 2024 (US$227,952 million) and continued into 2025, reaching US$310,780 million. The growth in invested capital suggests ongoing investment in the business, potentially driving the observed increases in market value.
- Market Value Added (MVA)
- Mirroring the trends in market value, MVA decreased from US$1,694,956 million in 2021 to US$1,080,335 million in 2022. A recovery began in 2023, with MVA rising to US$1,513,649 million. Continued growth was evident in 2024 (US$2,083,739 million) and accelerated sharply in 2025, reaching US$3,665,237 million. The substantial increase in MVA in 2025 suggests that the company is generating significant value for its investors beyond the capital initially invested.
The correlation between market value and MVA is strong, indicating that changes in market perception directly impact the value created for shareholders. The increasing trend in invested capital alongside the recovery and growth in market value and MVA suggests effective capital allocation and positive returns on investment in the later years of the observed period.
MVA Spread Ratio
Alphabet Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
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. Initially decreasing from 2021 to 2022, it subsequently demonstrated a pattern of growth through 2025. Invested capital also increased over the period, though not consistently. The MVA spread ratio, calculated from these figures, reveals a dynamic relationship between wealth creation and capital employed.
- Market Value Added (MVA)
- The MVA began at US$1,694,956 million in 2021, experiencing a substantial decline to US$1,080,335 million in 2022. A recovery was then observed, with MVA rising to US$1,513,649 million in 2023, US$2,083,739 million in 2024, and reaching US$3,665,237 million in 2025. This indicates a strengthening ability to generate value for investors over the latter part of the analyzed period.
- Invested Capital
- Invested capital increased from US$171,408 million in 2021 to US$202,355 million in 2022. A slight decrease was noted in 2023, falling to US$189,779 million, before increasing again to US$227,952 million in 2024 and US$310,780 million in 2025. The growth in invested capital suggests ongoing investment in the business, though the fluctuations warrant further investigation.
- MVA Spread Ratio
- The MVA spread ratio, representing MVA as a percentage of invested capital, showed a significant decrease from 988.84% in 2021 to 533.88% in 2022, mirroring the decline in MVA. The ratio then increased to 797.59% in 2023, 914.11% in 2024, and peaked at 1,179.37% in 2025. This upward trend suggests that the company is becoming increasingly efficient at generating value relative to the capital it employs. The substantial increase in the ratio from 2021 to 2025 indicates a considerable improvement in value creation efficiency.
In summary, while initial performance declined in 2022, the period from 2023 to 2025 demonstrates a positive trajectory in both MVA and the MVA spread ratio, suggesting improved value creation and efficient capital utilization.
MVA Margin
Alphabet Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Trade Desk Inc. | ||||||
| Walt Disney Co. | ||||||
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. Initially, a substantial decrease in MVA was observed, followed by a period of recovery and ultimately, significant growth. This trend is reflected in the MVA margin, which demonstrates a similar pattern of decline, stabilization, and then rapid expansion.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$1,694,956 million. A notable decline occurred in 2022, with the MVA decreasing to US$1,080,335 million. The following year, 2023, saw a recovery, with the MVA rising to US$1,513,649 million. This upward momentum continued into 2024, reaching US$2,083,739 million, and accelerated significantly in 2025, culminating in an MVA of US$3,665,237 million. This represents a more than doubling of MVA over the five-year period.
- Adjusted Revenues
- Adjusted revenues demonstrated a consistent upward trend throughout the period. From US$258,436 million in 2021, revenues increased to US$283,520 million in 2022, US$307,935 million in 2023, US$350,970 million in 2024, and finally reached US$405,436 million in 2025. While positive, the growth in revenues appears less dramatic than the fluctuations observed in MVA.
- MVA Margin
- The MVA margin experienced a dramatic decrease from 655.85% in 2021 to 381.04% in 2022, mirroring the decline in MVA. A partial recovery was noted in 2023, with the margin increasing to 491.55%. Further improvement occurred in 2024, reaching 593.71%. The most significant change was observed in 2025, where the MVA margin surged to 904.02%, indicating a substantial increase in value creation relative to adjusted revenues. The increasing MVA margin suggests that the company is becoming increasingly efficient at generating value from its revenue stream.
The divergence between revenue growth and MVA/MVA margin suggests factors beyond revenue generation are significantly influencing the company’s market valuation. These factors could include changes in investor sentiment, expectations of future growth, or improvements in operational efficiency not fully captured by revenue figures.