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
Meta Platforms 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 subsequent market value added (MVA). Initial observations reveal a substantial decrease in market value followed by a period of robust growth and stabilization.
- Market Value
- The market value experienced a considerable decline from US$630,226 million in 2021 to US$489,341 million in 2022. However, a strong recovery commenced in 2023, with the market value increasing to US$1,225,420 million. This upward trajectory continued into 2024, reaching US$1,755,471 million, and showed more moderate growth in 2025, closing at US$1,905,434 million. The overall trend indicates a recovery and expansion of market capitalization following the initial downturn.
- Invested Capital
- Invested capital exhibited a consistent upward trend throughout the observed period. Starting at US$92,809 million in 2021, it increased to US$101,764 million in 2022, US$141,324 million in 2023, US$165,969 million in 2024, and further to US$216,060 million in 2025. This consistent growth suggests ongoing investment in the business operations.
- Market Value Added (MVA)
- The MVA mirrored the pattern of the market value, initially decreasing from US$537,417 million in 2021 to US$387,577 million in 2022. A substantial increase was then observed, with MVA reaching US$1,084,096 million in 2023. Continued growth followed in 2024, with MVA reaching US$1,589,502 million, and a more modest increase in 2025 to US$1,689,374 million. The MVA demonstrates the value created for investors beyond the initial capital invested, and its growth correlates strongly with the recovery and expansion of the market value.
The relationship between invested capital and MVA indicates that the returns generated on invested capital have significantly improved, particularly from 2022 onwards. While invested capital has grown steadily, the MVA has experienced more pronounced fluctuations, suggesting that market perception and external factors play a substantial role in determining the overall value creation.
The period ending in 2025 shows a stabilization of growth in both market value and MVA, potentially indicating a maturing phase following the recovery period. Continued monitoring will be necessary to determine if this stabilization represents a new normal or a temporary plateau.
MVA Spread Ratio
Meta Platforms Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| 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 significant fluctuations over the observed period. Initially decreasing, it experienced substantial growth before stabilizing. The Invested Capital consistently increased throughout the period, reflecting ongoing investment in the business. The MVA spread ratio, calculated as a percentage, mirrored the trends in MVA, demonstrating a strong correlation between the two metrics.
- Market Value Added (MVA)
- The MVA decreased from US$537,417 million in 2021 to US$387,577 million in 2022, representing a decline of approximately 27.88%. A substantial recovery and growth followed, with MVA reaching US$1,084,096 million in 2023 and further increasing to US$1,589,502 million in 2024. Growth moderated in 2025, with MVA reaching US$1,689,374 million, indicating a slowing rate of value creation.
- Invested Capital
- Invested Capital demonstrated a consistent upward trend throughout the period. It increased from US$92,809 million in 2021 to US$101,764 million in 2022, representing a growth of approximately 9.6%. This growth continued, reaching US$141,324 million in 2023, US$165,969 million in 2024, and US$216,060 million in 2025. The consistent increase suggests ongoing investment in the company’s operations and expansion.
- MVA Spread Ratio
- The MVA spread ratio experienced a significant decrease from 579.06% in 2021 to 380.86% in 2022, mirroring the decline in MVA. The ratio then increased substantially, reaching 767.10% in 2023 and peaking at 957.71% in 2024, reflecting the strong growth in MVA relative to Invested Capital. In 2025, the ratio decreased to 781.90%, indicating a moderation in the rate of MVA growth relative to the continued increase in Invested Capital. The high values of the ratio throughout the period suggest that the market significantly values the company’s ability to generate value beyond its invested capital.
The period demonstrates a recovery in value creation following an initial decline. While Invested Capital consistently increased, the MVA spread ratio suggests that the company’s ability to generate market value exceeded its capital investment, particularly in 2024. The moderation in the MVA spread ratio in 2025 warrants further investigation to determine the sustainability of value creation relative to investment.
MVA Margin
Meta Platforms Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| 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 revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations between 2021 and 2025. Initially, a substantial decrease in MVA was observed, followed by a period of strong growth and a subsequent moderation. This trend is closely related to changes in Adjusted Revenue and is reflected in the MVA margin.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$537,417 million. A considerable decline occurred in 2022, with the MVA falling to US$387,577 million. However, 2023 witnessed a dramatic recovery, with the MVA more than doubling to US$1,084,096 million. Continued growth was seen in 2024, reaching US$1,589,502 million, although the rate of increase slowed. By 2025, the MVA reached US$1,689,374 million, representing a more modest increase from the prior year.
- Adjusted Revenue
- Adjusted Revenue experienced a slight decrease from US$118,154 million in 2021 to US$116,539 million in 2022. Subsequent years showed consistent growth, increasing to US$135,051 million in 2023, US$164,598 million in 2024, and further to US$201,274 million in 2025. This upward trajectory in revenue appears to correlate with the recovery and growth observed in MVA from 2023 onwards.
- MVA Margin
- The MVA margin mirrored the fluctuations in MVA. It decreased from a high of 454.84% in 2021 to 332.57% in 2022, coinciding with the decline in MVA. A substantial increase was then observed in 2023, with the margin reaching 802.73%. This growth continued into 2024, peaking at 965.69%. In 2025, the MVA margin decreased to 839.34%, indicating a moderation in the rate of value creation relative to revenue, despite continued growth in both MVA and Adjusted Revenue.
The period between 2022 and 2024 demonstrates a strong positive relationship between revenue growth and MVA creation. However, the decrease in MVA margin in 2025 suggests that while revenue continues to increase, the efficiency of translating revenue into market value may be diminishing.