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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Current Ratio since 2005
- Analysis of Debt
- Aggregate Accruals
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MVA
Netflix Inc., MVA calculation
US$ in thousands
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 information presents a five-year trend of market value, invested capital, and market value added. A significant fluctuation in market value is observed over the period, impacting the overall market value added.
- Market Value
- The market value decreased from US$192.43 million in 2021 to US$178.26 million in 2022, representing a decline. A substantial increase followed, with the market value reaching US$264.27 million in 2023 and peaking at US$432.32 million in 2024. However, the market value experienced a decrease in 2025, settling at US$381.05 million. This indicates considerable volatility in investor perception of the company’s future prospects.
- Invested Capital
- Invested capital demonstrates a consistent upward trend throughout the observed period. Starting at US$34.79 million in 2021, it increased to US$37.78 million in 2022, US$37.93 million in 2023, US$40.71 million in 2024, and finally reached US$43.68 million in 2025. This suggests a continuous reinvestment in the business.
- Market Value Added (MVA)
- The MVA mirrors the fluctuations in market value. It decreased from US$157.65 million in 2021 to US$140.47 million in 2022. A significant recovery and subsequent growth were observed, with MVA rising to US$226.35 million in 2023 and peaking at US$391.61 million in 2024. A decline in 2025 brought the MVA to US$337.37 million. The strong correlation between market value and MVA indicates that changes in investor expectations regarding the company’s future performance are the primary driver of MVA.
- Relationship between MVA and Invested Capital
- While invested capital consistently increased, the MVA experienced more pronounced fluctuations. The ratio of MVA to invested capital varied considerably over the period. This suggests that the efficiency with which invested capital generated value for shareholders was not constant, and was heavily influenced by external market factors and investor sentiment. The peak in MVA in 2024, despite a relatively modest increase in invested capital, indicates a period of high returns on investment.
In summary, the period was characterized by substantial changes in market value and, consequently, in market value added. The consistent growth in invested capital suggests ongoing business expansion, but the fluctuating MVA highlights the sensitivity of the company’s valuation to market conditions and investor confidence.
MVA Spread Ratio
Netflix Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms 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 five-year period. Initially decreasing from 2021 to 2022, it demonstrated substantial growth in subsequent years before experiencing a decline in the final year observed. Invested capital consistently increased throughout the period, albeit at a more moderate pace. The MVA spread ratio mirrored the trends in MVA, showing considerable volatility.
- Market Value Added (MVA)
- The MVA began at US$157,648,896 thousand in 2021, decreasing to US$140,474,691 thousand in 2022, representing a decline of approximately 10.8%. A strong recovery followed, with MVA increasing to US$226,346,621 thousand in 2023 and further escalating to US$391,605,961 thousand in 2024. However, the final year, 2025, saw a decrease to US$337,368,981 thousand, indicating a potential shift in market perception or performance.
- Invested Capital
- Invested capital showed a consistent upward trend throughout the period. Starting at US$34,785,312 thousand in 2021, it rose to US$37,782,560 thousand in 2022, US$37,926,586 thousand in 2023, US$40,712,328 thousand in 2024, and finally reached US$43,678,946 thousand in 2025. The increases were relatively modest compared to the fluctuations observed in MVA.
- MVA Spread Ratio
- The MVA spread ratio experienced substantial variation. It began at 453.21% in 2021, decreased to 371.80% in 2022, then increased dramatically to 596.80% in 2023 and peaked at 961.89% in 2024. The ratio subsequently declined to 772.38% in 2025. This ratio consistently remained above 370%, suggesting that the market value created significantly exceeded the capital invested throughout the observed period, although the magnitude of this excess varied considerably.
The significant increase in the MVA spread ratio in 2023 and 2024, coupled with the corresponding rise in MVA, suggests a period of heightened market confidence and value creation. The subsequent decline in both MVA and the MVA spread ratio in 2025 warrants further investigation to determine the underlying causes and potential implications for future performance.
MVA Margin
Netflix Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms 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 significant fluctuations over the five-year period. Initially decreasing from 2021 to 2022, it demonstrated substantial growth in subsequent years before experiencing a decline in the most recent year presented. This pattern is reflected in the MVA margin, which mirrors the changes in MVA but expresses them as a percentage of adjusted revenues.
- Market Value Added (MVA)
- The MVA began at US$157,648,896 thousand in 2021, decreasing to US$140,474,691 thousand in 2022. A considerable increase followed, with MVA reaching US$226,346,621 thousand in 2023 and peaking at US$391,605,961 thousand in 2024. The latest year, 2025, shows a decrease to US$337,368,981 thousand. This suggests periods of strong value creation followed by a recent retraction.
- Adjusted Revenues
- Adjusted revenues consistently increased throughout the period, moving from US$29,789,194 thousand in 2021 to US$45,437,953 thousand in 2025. This upward trend indicates consistent growth in the company’s core business operations, even as MVA fluctuated.
- MVA Margin
- The MVA margin initially decreased from 529.22% in 2021 to 443.55% in 2022, aligning with the decline in MVA. A substantial increase was then observed, reaching 667.66% in 2023 and a high of 1,002.09% in 2024. The margin subsequently decreased to 742.48% in 2025. The significant margin values suggest that the company generates substantial value relative to its adjusted revenues, although this value creation has not been consistently increasing.
The divergence between the consistently rising adjusted revenues and the fluctuating MVA and MVA margin indicates that factors beyond revenue growth are significantly impacting the company’s market value. These factors could include changes in investor expectations, competitive pressures, or shifts in the company’s cost structure and profitability. The decline in MVA and MVA margin in 2025, despite continued revenue growth, warrants further investigation.