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
Hewlett Packard Enterprise Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Hewlett Packard Enterprise Co. market (fair) value less invested capital. | Hewlett Packard Enterprise Co. MVA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
MVA Spread Ratio
Hewlett Packard Enterprise Co., MVA spread ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | (7,740) | (7,522) | (7,552) | (8,676) | (4,726) | (8,332) | |
| Invested capital2 | 43,254) | 41,543) | 42,837) | 42,440) | 43,287) | 44,277) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | -17.89% | -18.11% | -17.63% | -20.44% | -10.92% | -18.82% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Apple Inc. | 4,423.16% | 5,157.62% | 5,626.48% | 4,945.07% | 2,012.85% | 3,193.19% | |
| Arista Networks Inc. | 1,572.10% | 1,223.83% | 1,867.28% | 1,067.73% | 782.88% | — | |
| Cisco Systems Inc. | 279.75% | 214.20% | 329.31% | 225.53% | 295.15% | — | |
| Super Micro Computer Inc. | 466.63% | 91.12% | 50.17% | 20.30% | 2.42% | 13.48% | |
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × -7,740 ÷ 43,254 = -17.89%
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. | Hewlett Packard Enterprise Co. MVA spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
MVA Margin
Hewlett Packard Enterprise Co., MVA margin calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | (7,740) | (7,522) | (7,552) | (8,676) | (4,726) | (8,332) | |
| Net revenue | 29,135) | 28,496) | 27,784) | 26,982) | 29,135) | 30,852) | |
| Add: Increase (decrease) in deferred revenue | 533) | 26) | 165) | 230) | 162) | 208) | |
| Adjusted net revenue | 29,668) | 28,522) | 27,949) | 27,212) | 29,297) | 31,060) | |
| Performance Ratio | |||||||
| MVA margin2 | -26.09% | -26.37% | -27.02% | -31.88% | -16.13% | -26.83% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Apple Inc. | 695.76% | 609.53% | 653.71% | 648.08% | 392.95% | 317.17% | |
| Arista Networks Inc. | 1,189.21% | 844.68% | 1,096.71% | 834.74% | 575.84% | — | |
| Cisco Systems Inc. | 278.31% | 240.26% | 367.17% | 235.28% | 311.35% | — | |
| Super Micro Computer Inc. | 158.10% | 38.75% | 18.09% | 7.53% | 0.78% | 4.36% | |
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × -7,740 ÷ 29,668 = -26.09%
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. | Hewlett Packard Enterprise Co. MVA margin ratio improved from 2021 to 2022 and from 2022 to 2023. |