Intuit Inc. (NASDAQ:INTU)

Market (fair) value of Intuit

The market value exhibits a significant upward trend from 2020 through 2025. Starting at approximately $93.5 billion in 2020, it rises sharply to around $156.2 billion in 2021, followed by a noticeable decline to $125.3 billion in 2022. However, it recovers strongly in 2023 to $159.7 billion and continues to increase steadily, reaching about $191.4 billion by 2025. Overall, the market value more than doubles over the six-year period despite the mid-term dip.

Invested capital

Invested capital shows a clear growth trend from 2020 to 2022, moving from approximately $8.7 billion to $24.7 billion. After peaking in 2022, the invested capital marginally declines and fluctuates slightly, settling just above $24.5 billion by 2025. This indicates a substantial increase in capital investment early in the period, followed by stabilization in later years.

Market value added (MVA)

The market value added closely mirrors the market value trend and shows considerable increases between 2020 and 2021, growing from about $84.8 billion to $143.9 billion. It then declines significantly in 2022 to approximately $100.6 billion, before recovering to $136.0 billion in 2023. Continuing the upward trajectory, MVA reaches $166.9 billion by 2025. This suggests that the company's value creation, relative to its invested capital, remains robust despite short-term fluctuations.

The financial data reveals several notable trends regarding performance and capital investment over the analyzed periods.

Market Value Added (MVA)

MVA exhibited significant growth from 2020 to 2021, rising from approximately 84.8 billion USD to 143.9 billion USD, indicating a period of substantial value creation. However, in 2022, there was a notable decline to around 100.6 billion USD. Subsequent years saw a recovery and steady increase, reaching approximately 166.9 billion USD by 2025. This pattern suggests volatility but overall growth in market valuation beyond invested capital.

Invested Capital

Invested capital showed a continuous upward trajectory from 2020 to 2022, increasing from about 8.7 billion USD to 24.7 billion USD, more than doubling within this period. However, from 2022 onwards, invested capital stabilized and fluctuated slightly, remaining in the range of approximately 23.7 billion USD to 24.9 billion USD through 2025. This indicates a phase of capital consolidation after rapid expansion.

MVA Spread Ratio

The MVA spread ratio, reflecting the premium of market value over invested capital as a percentage, was extraordinarily high in 2020 and 2021, exceeding 900% and peaking above 1175%, respectively. This suggests extremely strong market confidence and value generation relative to capital employed during these years. The ratio dropped significantly in 2022 to about 406.8%, but then showed a steady increase through to 2025, reaching nearly 681%. Although lower than the peak values, the ratio remains robust, indicating sustained market value appreciation relative to capital invested.

In summary, the data indicates an initial phase of aggressive value growth and capital investment, followed by a period of correction and stabilization. Despite fluctuations, the market consistently values the company significantly above its invested capital, evidencing favorable market perceptions and efficient capital use over the longer term.

Market Value Added (MVA)

The market value added shows significant fluctuation over the observed periods. There was a substantial increase from 84,823 million US dollars in 2020 to 143,928 million in 2021, representing strong growth. However, this was followed by a notable decline to 100,585 million in 2022. Subsequently, the MVA recovered in the following years, reaching 136,013 million in 2023, 155,818 million in 2024, and further increasing to 166,922 million in 2025. Overall, despite the dip in 2022, the trend demonstrates considerable growth with eventual recovery and expansion toward the end of the period.

Adjusted Net Revenue

Adjusted net revenue displays a steady and robust upward trajectory across all periods. Starting at 7,721 million US dollars in 2020, the revenue increased year-on-year without reversal, reaching 9,660 million in 2021, 12,848 million in 2022, and continuing to grow to 14,480 million, 16,235 million, and 18,978 million in 2023, 2024, and 2025 respectively. This consistent growth suggests effective revenue generation and potential expansion in operations or market presence.

MVA Margin

The MVA margin, representing the ratio of market value added to adjusted net revenue, shows volatility over the years. It peaked at 1,489.94% in 2021, indicating exceptional value creation relative to revenue at that point. However, this metric sharply declined to 782.89% in 2022, reflecting a decrease in market valuation efficiency. Thereafter, the margin rose again to 939.31% in 2023 and slightly increased to 959.77% in 2024, but then decreased to 879.56% in 2025. Despite fluctuations, the MVA margin remains high, suggesting the company continues to create significant market value relative to its net revenue, though with some variability in efficiency across the years.