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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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Analysis of Revenues
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MVA
Advanced Micro Devices Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of AMD
- The market value exhibited a generally upward trend over the period, increasing from approximately $103.9 billion in 2020 to a peak of around $272.1 billion in 2023. This represents a significant appreciation in market valuation. However, in 2024, there was a notable decline to about $182.3 billion, which indicates some volatility or market correction after the peak.
- Invested capital
- Invested capital increased sharply from about $4.4 billion in 2020 to around $6.2 billion in 2021. Thereafter, there was a dramatic leap to approximately $58.5 billion by the end of 2022. This elevated level of invested capital remained relatively stable through 2023 and 2024, reflecting substantial capital expenditures or asset investments made primarily in or before 2022, with minimal changes in following years.
- Market value added (MVA)
- Market value added, which reflects the difference between market value and invested capital, showed a similar pattern to market value. It rose significantly from about $99.6 billion in 2020 to a peak of $214.2 billion in 2023, demonstrating considerable value creation beyond invested capital. However, MVA declined to approximately $124.1 billion in 2024, paralleling the reduction seen in market value, but still remains considerably higher than early period levels.
- Overall insights
- The data suggests a period of aggressive investment and asset growth culminating at the end of 2022, followed by a strong increase in market valuation and value added through 2023. The subsequent decline in 2024 market value and MVA highlights potential challenges in maintaining the peak valuation levels or changing market conditions. Despite the 2024 drop, the company has maintained a substantially higher capital base and market value compared to 2020, indicating sustained growth over the medium term.
MVA Spread Ratio
Advanced Micro Devices Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
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.
The financial data reveals notable fluctuations in key performance indicators over the analyzed periods.
- Market Value Added (MVA)
- The Market Value Added exhibited significant volatility, with a marked increase from 99,559 million US dollars in 2020 to a peak of 137,504 million in 2021. This was followed by a sharp decline to 70,154 million in 2022. Subsequently, the MVA surged to its highest level of 214,240 million in 2023 before decreasing again to 124,081 million in 2024. These fluctuations suggest periods of varying investor confidence and market valuation relative to the company's capital.
- Invested Capital
- Invested Capital demonstrated a relatively stable trajectory initially, increasing from 4,364 million US dollars in 2020 to 6,195 million in 2021. However, an exceptional rise occurred in 2022, with the figure escalating dramatically to 58,525 million. This elevated level of invested capital was maintained in subsequent years, with slight decreases to 57,883 million in 2023 and a minor increase to 58,227 million in 2024. The substantial increase in invested capital from 2021 onwards indicates significant reinvestment or asset acquisition efforts during this period.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the percentage difference between the market value added and the invested capital, showed a steep decline from extraordinarily high levels above 2,200% in 2020 and 2021 to a much lower 119.87% in 2022. It improved to 370.13% in 2023, followed by a decrease to 213.1% in 2024. This pattern indicates that although the company maintained positive value creation relative to invested capital, the efficiency or premium reflected in market valuation diminished significantly during the peak invested capital increase in 2022, with some recovery in the following years.
MVA Margin
Advanced Micro Devices Inc., MVA margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited notable fluctuations over the analyzed period. Initially, there was a substantial increase from approximately 99.6 billion US dollars in 2020 to about 137.5 billion in 2021. However, this was followed by a sharp decline to 70.2 billion in 2022. Subsequently, the MVA surged dramatically to reach a peak of 214.2 billion in 2023, before decreasing again to 124.1 billion in 2024. This pattern suggests periods of significant market revaluation and volatility affecting the company's market value.
- Net Revenue
- Net revenue demonstrated a generally upward trajectory throughout the period. Starting from 9.8 billion US dollars in 2020, it increased markedly to 16.4 billion in 2021 and further expanded to 23.6 billion in 2022. There was a slight contraction in 2023 to 22.7 billion, followed by a rebound to 25.8 billion in 2024. Overall, the company's ability to generate revenue improved significantly, despite minor fluctuations during the latter years.
- MVA Margin
- The MVA margin showed considerable volatility, reflecting changes in the relationship between market value added and net revenue. The margin started at over 1000% in 2020 and gently decreased to 837% in 2021. It then fell sharply to below 300% in 2022. A pronounced recovery occurred in 2023, with the margin rising close to 945%, followed by another downturn to 481% in 2024. This indicates varying efficiency in translating revenue growth into market value, likely influenced by external market conditions and company performance perception.
- Summary
- Overall, the data reveals that the company experienced substantial growth in net revenue over the five-year span, with some intermittent declines. Market value added was more volatile, showing significant peaks and troughs, which affected the MVA margin's stability. These fluctuations highlight underlying variability in investor sentiment and market conditions, impacting the company's perceived value relative to its revenue generation capacity.