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 Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
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MVA
Lockheed Martin Corp., MVA calculation
US$ in millions
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 market value of the company exhibited volatility over the five-year period. Initial growth from 2021 to 2022 was followed by a decline in 2023, a modest recovery in 2024, and substantial growth in 2025. Invested capital demonstrated a generally increasing trend, though with some fluctuation. Market value added (MVA) mirrored the pattern of the market value, showing initial gains, a dip, and then significant improvement in the final year.
- Market Value Trend
- The market value increased from US$119,998 million in 2021 to US$132,930 million in 2022, representing a growth of approximately 10.8%. A subsequent decrease was observed in 2023, with the market value falling to US$124,097 million. This was followed by a smaller increase to US$127,192 million in 2024. The most substantial change occurred between 2024 and 2025, with the market value rising significantly to US$164,376 million, a growth of approximately 29.3%.
- Invested Capital Trend
- Invested capital decreased from US$28,620 million in 2021 to US$26,603 million in 2022. It then experienced a slight increase to US$27,427 million in 2023, continued to rise to US$28,784 million in 2024, and further increased to US$30,349 million in 2025. The overall trend indicates a moderate increase in invested capital over the period, despite the initial decline.
- Market Value Added (MVA) Trend
- MVA increased from US$91,378 million in 2021 to US$106,327 million in 2022, mirroring the market value growth. A decrease was noted in 2023, with MVA falling to US$96,670 million. It then rose slightly to US$98,408 million in 2024. The most significant increase in MVA occurred between 2024 and 2025, reaching US$134,027 million. This substantial increase suggests a significant creation of shareholder value in the final year.
The relationship between market value and MVA suggests that changes in the company’s perceived value by the market directly impact the calculated MVA. The increasing trend in invested capital, coupled with the substantial growth in MVA in 2025, may indicate improved efficiency in capital allocation or a positive shift in market expectations regarding future profitability.
MVA Spread Ratio
Lockheed Martin Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| RTX Corp. | ||||||
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 fluctuating growth over the five-year period. Initial growth from 2021 to 2022 was followed by a decline in 2023, a slight recovery in 2024, and then substantial growth in 2025. Invested capital demonstrated a more consistent, albeit modest, upward trend throughout the period. The MVA spread ratio, reflecting the relationship between MVA and invested capital, mirrored the MVA trend, displaying significant volatility.
- Market Value Added (MVA)
- MVA increased from US$91.378 billion in 2021 to US$106.327 billion in 2022, representing a growth of approximately 16.4%. A subsequent decrease was observed in 2023, with MVA falling to US$96.670 billion. This was partially recovered in 2024, reaching US$98.408 billion, before a significant increase to US$134.027 billion in 2025. The substantial growth in the final year suggests a positive market perception of value creation.
- Invested Capital
- Invested capital experienced a slight decrease from US$28.620 billion in 2021 to US$26.603 billion in 2022. However, it then began a consistent upward trajectory, reaching US$27.427 billion in 2023, US$28.784 billion in 2024, and US$30.349 billion in 2025. This indicates a steady, though not dramatic, increase in the capital employed by the entity.
- MVA Spread Ratio
- The MVA spread ratio, which indicates the amount of MVA generated per dollar of invested capital, showed considerable fluctuation. It peaked at 399.68% in 2022, following an initial value of 319.28% in 2021. A decrease to 352.46% occurred in 2023, followed by a further decline to 341.89% in 2024. The ratio then experienced a substantial increase to 441.62% in 2025, coinciding with the significant growth in MVA. This suggests that the entity became increasingly efficient in generating market value relative to its invested capital in the final year of the observed period.
The observed volatility in the MVA spread ratio warrants further investigation to understand the underlying drivers of value creation and capital efficiency. The strong performance in 2025, as indicated by both MVA and the MVA spread ratio, suggests a potentially positive shift in the entity’s ability to generate returns for its investors.
MVA Margin
Lockheed Martin Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| RTX Corp. | ||||||
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 ÷ Sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuating performance between 2021 and 2025. While generally positive, the MVA experienced both increases and decreases over the five-year period. Sales demonstrated a more consistent, albeit moderate, upward trajectory.
- Market Value Added (MVA)
- The MVA began at US$91,378 million in 2021, increasing to US$106,327 million in 2022. A subsequent decline was observed in 2023, with the MVA falling to US$96,670 million. A modest increase followed in 2024, reaching US$98,408 million, before a substantial rise to US$134,027 million in 2025. This indicates a period of strong value creation in the most recent year analyzed.
- Sales
- Sales decreased slightly from US$67,044 million in 2021 to US$65,984 million in 2022. Subsequent years showed consistent growth, reaching US$67,571 million in 2023, US$71,043 million in 2024, and US$75,048 million in 2025. This represents a cumulative increase in sales over the period, despite the initial dip.
- MVA Margin
- The MVA margin peaked at 161.14% in 2022, following a value of 136.30% in 2021. The margin decreased in both 2023 (143.06%) and 2024 (138.52%). A significant increase was then recorded in 2025, with the MVA margin reaching 178.59%. The MVA margin’s fluctuations suggest a changing relationship between value created and sales revenue, with the most recent year demonstrating the highest efficiency in generating market value from sales.
The increase in MVA in 2025, coupled with the highest MVA margin of the period, suggests improved shareholder value creation relative to sales. The earlier decline in MVA in 2023, despite increasing sales, indicates potential factors impacting the market’s valuation of the company’s future prospects during that year.