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
Mastercard Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Mastercard Inc. market (fair) value less invested capital. | Mastercard Inc. MVA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
MVA Spread Ratio
Mastercard Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 343,864) | 354,148) | 333,701) | 336,913) | 220,491) | |
| Invested capital2 | 21,548) | 22,365) | 19,854) | 14,672) | 11,243) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 1,595.80% | 1,583.49% | 1,680.77% | 2,296.30% | 1,961.07% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | 442.58% | 739.74% | 550.21% | 505.40% | — | |
| Adobe Inc. | 658.07% | 1,033.13% | 1,082.99% | 884.94% | — | |
| Cadence Design Systems Inc. | 1,302.22% | 1,110.87% | 1,232.57% | 792.57% | — | |
| CrowdStrike Holdings Inc. | 1,273.85% | 1,618.34% | 1,449.48% | — | — | |
| International Business Machines Corp. | 60.20% | 54.96% | 39.12% | 47.78% | — | |
| Intuit Inc. | 406.80% | 1,175.12% | 976.09% | 1,553.30% | — | |
| Microsoft Corp. | 956.02% | 1,383.21% | 1,315.93% | 962.41% | — | |
| Oracle Corp. | 224.95% | 260.27% | 180.84% | 220.64% | — | |
| Palantir Technologies Inc. | 488.89% | 829.78% | 1,919.83% | — | — | |
| Palo Alto Networks Inc. | 559.30% | 573.51% | 267.94% | 424.83% | — | |
| Salesforce Inc. | 150.31% | 270.75% | 226.93% | 326.41% | — | |
| ServiceNow Inc. | 1,276.80% | 1,798.18% | 2,575.52% | 2,192.76% | — | |
| Synopsys Inc. | 565.55% | 707.79% | 468.10% | 272.11% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 343,864 ÷ 21,548 = 1,595.80%
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. | Mastercard Inc. MVA spread ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
MVA Margin
Mastercard Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 343,864) | 354,148) | 333,701) | 336,913) | 220,491) | |
| Net revenue | 22,237) | 18,884) | 15,301) | 16,883) | 14,950) | |
| Add: Increase (decrease) in deferred revenue | 20) | 164) | 154) | 25) | 72) | |
| Adjusted net revenue | 22,257) | 19,048) | 15,455) | 16,908) | 15,022) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,544.97% | 1,859.24% | 2,159.18% | 1,992.62% | 1,467.79% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | 213.17% | 379.26% | 279.96% | 233.58% | — | |
| Adobe Inc. | 766.46% | 1,287.44% | 1,554.19% | 1,330.31% | — | |
| Cadence Design Systems Inc. | 1,299.21% | 1,128.47% | 1,241.37% | 769.46% | — | |
| CrowdStrike Holdings Inc. | 1,995.27% | 3,362.60% | 1,272.66% | — | — | |
| International Business Machines Corp. | 104.54% | 104.85% | 68.01% | 81.54% | — | |
| Intuit Inc. | 782.89% | 1,489.94% | 1,098.60% | 1,034.92% | — | |
| Microsoft Corp. | 916.17% | 1,148.11% | 976.86% | 711.95% | — | |
| Oracle Corp. | 412.88% | 514.72% | 411.93% | 401.82% | — | |
| Palantir Technologies Inc. | 820.15% | 1,366.76% | 3,910.89% | — | — | |
| Palo Alto Networks Inc. | 651.61% | 771.73% | 434.98% | 469.70% | — | |
| Salesforce Inc. | 417.33% | 620.94% | 558.53% | 642.57% | — | |
| ServiceNow Inc. | 1,026.06% | 1,555.49% | 2,101.04% | 1,606.91% | — | |
| Synopsys Inc. | 796.87% | 1,126.17% | 803.94% | 470.26% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × 343,864 ÷ 22,257 = 1,544.97%
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. | Mastercard Inc. MVA margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |