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
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
Netflix Inc., MVA calculation
US$ in thousands
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 »
The financial data reveals significant fluctuations and growth in the market value and capital metrics over the five-year period analyzed.
- Market (fair) value of Netflix
- The market value exhibited a notable decrease from approximately 259.6 billion US dollars at the end of 2020 to around 178.2 billion at the end of 2022. This decline was followed by a substantial recovery and growth, reaching approximately 264.3 billion in 2023 and then nearly doubling to 432.3 billion by the end of 2024. The trend indicates a period of volatility with recovery and strong market confidence in the last two years.
- Invested capital
- Invested capital showed a consistent upward trend throughout the period. It increased from roughly 29.8 billion US dollars at the end of 2020 to approximately 40.7 billion by the end of 2024. The growth was gradual but steady each year, reflecting ongoing investment in the company’s assets or projects.
- Market value added (MVA)
- Market value added followed a pattern similar to the market value, starting at about 229.8 billion US dollars in 2020 and decreasing to approximately 140.5 billion by the end of 2022. It then rebounded strongly to around 226.4 billion in 2023 and surged to nearly 391.6 billion by the end of 2024. This reflects the change in market valuation relative to invested capital, highlighting periods of both value erosion and significant value creation.
Overall, the data indicates a phase of diminished market valuation up to 2022, followed by a recovery period marked by strong market performance and an increase in capital invested. The divergence between invested capital and MVA suggests that while invested capital has increased steadily, the market’s reassessment of future growth and profitability potential has varied more considerably, culminating in robust value creation in the latest years.
MVA Spread Ratio
Netflix 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 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. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- Between 2020 and 2022, the MVA exhibited a downward trend, decreasing from approximately 229.8 billion US dollars in 2020 to 140.5 billion US dollars in 2022. However, there was a significant recovery thereafter, with MVA increasing to about 226.4 billion US dollars in 2023 and further rising substantially to nearly 391.6 billion US dollars by the end of 2024.
- Invested Capital
- Invested capital showed a consistent upward trend throughout the period. It increased from approximately 29.8 billion US dollars in 2020 to around 40.7 billion US dollars in 2024, reflecting a steady growth in capital investment year over year.
- MVA Spread Ratio
- The MVA spread ratio, representing the relationship between market value added and invested capital, showed a substantial decline from 772.09% in 2020 to 371.76% in 2022. Subsequently, there was a notable recovery, rising to 596.82% in 2023 and reaching a peak of 961.87% in 2024. This indicates an improving efficiency in value creation relative to invested capital, particularly in the last two years of the period under review.
- Overall Insights
- The analyzed financial data depict initial challenges in market value creation and efficiency as reflected by falling MVA and MVA spread ratio through 2022, despite a steady increase in invested capital. The strong rebound in MVA and MVA spread ratio from 2023 onward suggests that the company has enhanced its ability to generate significant value beyond the invested capital, signaling improved market perception and operational effectiveness. The growing invested capital base alongside increased MVA indicates strategic investment growth accompanied by stronger returns over time.
MVA Margin
Netflix 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 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. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
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 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited a decline from 229,788,230 thousand USD at the end of 2020 to 140,461,330 thousand USD at the end of 2022. After this decrease, there was a recovery observed in the subsequent years, with MVA increasing substantially to 226,355,276 thousand USD by the end of 2023 and further rising to 391,601,684 thousand USD by the end of 2024. This pattern indicates an initial contraction followed by a strong expansion in market value over the five-year span.
- Adjusted Revenues
- Adjusted revenues demonstrated a consistent upward trajectory throughout the period. Starting at 25,189,303 thousand USD in 2020, revenues increased every year, reaching 39,078,810 thousand USD in 2024. This steady growth suggests ongoing business expansion and enhanced revenue generation capabilities across the timeline.
- MVA Margin
- The MVA margin, representing the ratio of market value added to adjusted revenues expressed as a percentage, showed a notable decline initially, falling from 912.25% in 2020 to 443.5% in 2022. Subsequently, the margin recovered significantly, climbing to 667.68% in 2023 and reaching 1002.08% by 2024. This fluctuation reflects the changes in market perceptions relative to the company's revenue growth, highlighting a period of reduced market confidence that later reversed into a strengthened valuation relative to revenue.