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.
MVA
Alphabet 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 »
| Item | Description | The company |
|---|---|---|
| MVA | Alphabet Inc. market (fair) value less invested capital. | Alphabet Inc. MVA increased from 2022 to 2023 and from 2023 to 2024. |
MVA Spread Ratio
Alphabet 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 | 2,083,739) | 1,513,649) | 1,080,335) | 1,694,956) | 1,167,431) | |
| Invested capital2 | 227,952) | 189,779) | 202,355) | 171,408) | 145,844) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 914.11% | 797.59% | 533.88% | 988.84% | 800.47% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Comcast Corp. | 4.16% | 34.32% | 23.22% | 50.36% | 64.16% | |
| Meta Platforms Inc. | 957.71% | 767.10% | 380.86% | 579.06% | 791.20% | |
| Netflix Inc. | 961.87% | 596.82% | 371.76% | 453.21% | 772.09% | |
| Walt Disney Co. | 50.39% | 33.59% | 34.30% | 103.57% | 101.22% | |
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 × 2,083,739 ÷ 227,952 = 914.11%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | Alphabet Inc. MVA spread ratio improved from 2022 to 2023 and from 2023 to 2024. |
MVA Margin
Alphabet 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 | 2,083,739) | 1,513,649) | 1,080,335) | 1,694,956) | 1,167,431) | |
| Revenues | 350,018) | 307,394) | 282,836) | 257,637) | 182,527) | |
| Add: Increase (decrease) in deferred revenue | 952) | 541) | 684) | 799) | 758) | |
| Adjusted revenues | 350,970) | 307,935) | 283,520) | 258,436) | 183,285) | |
| Performance Ratio | ||||||
| MVA margin2 | 593.71% | 491.55% | 381.04% | 655.85% | 636.95% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Comcast Corp. | 7.21% | 59.40% | 41.05% | 99.16% | 138.43% | |
| Meta Platforms Inc. | 965.69% | 802.73% | 332.57% | 454.84% | 744.17% | |
| Netflix Inc. | 1,002.08% | 667.68% | 443.50% | 529.22% | 912.25% | |
| Walt Disney Co. | 91.70% | 65.59% | 70.59% | 263.91% | 272.21% | |
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 × 2,083,739 ÷ 350,970 = 593.71%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | Alphabet Inc. MVA margin ratio improved from 2022 to 2023 and from 2023 to 2024. |