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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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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MVA
Booking Holdings Inc., 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 period under review demonstrates significant fluctuations in market value and associated market value added. Initial observations reveal a decrease in market capitalization followed by substantial growth, and a subsequent decline. Invested capital exhibits a generally decreasing trend, though with some stabilization in later periods.
- Market Value
- The market value of the entity decreased from US$110,715 million in 2021 to US$101,672 million in 2022, representing a decline of approximately 8.2%. A considerable recovery and expansion occurred between 2022 and 2024, with the market value reaching US$183,721 million. However, the market value then decreased to US$154,395 million in 2025, indicating a potential shift in investor sentiment or market conditions.
- Invested Capital
- Invested capital experienced a consistent decrease from US$15,004 million in 2021 to US$11,415 million in 2023. This represents a reduction of approximately 24.1% over the three-year period. A slight increase to US$12,973 million was observed in 2024, followed by a marginal decrease to US$12,912 million in 2025. The relative stability in invested capital during the final two years suggests a potential bottoming out of capital expenditure or a shift in investment strategy.
- Market Value Added (MVA)
- The MVA initially decreased from US$95,711 million in 2021 to US$88,030 million in 2022, mirroring the decline in market value. A substantial increase in MVA was then observed, rising to US$170,748 million in 2024, driven by the significant growth in market value. Similar to the market value, MVA decreased in 2025 to US$141,483 million, suggesting a correlation between overall market perception and value creation. The magnitude of MVA consistently exceeds invested capital throughout the period, indicating positive value creation relative to capital employed.
The relationship between market value and MVA is strong, with changes in market value directly impacting MVA. The stabilization of invested capital in the later years, coupled with the fluctuations in market value, suggests that external factors and investor expectations are playing an increasingly important role in determining the entity’s overall value.
MVA Spread Ratio
Booking Holdings Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks 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 considerable fluctuation between 2021 and 2025. Initially decreasing from US$95,711 million in 2021 to US$88,030 million in 2022, MVA experienced a substantial increase, reaching US$137,052 million in 2023 and peaking at US$170,748 million in 2024. A subsequent decline to US$141,483 million was observed in 2025, though remaining significantly above the 2021 and 2022 levels.
Concurrently, Invested Capital demonstrated a generally decreasing trend from 2021 to 2023, falling from US$15,004 million to US$11,415 million. A modest increase occurred in 2024, reaching US$12,973 million, followed by a slight decrease to US$12,912 million in 2025. The fluctuations in Invested Capital were considerably less pronounced than those observed in MVA.
- MVA Spread Ratio
- The MVA spread ratio increased consistently from 637.90% in 2021 to 645.29% in 2022. A dramatic surge followed, with the ratio reaching 1,200.63% in 2023 and peaking at 1,316.18% in 2024. The ratio then decreased to 1,095.75% in 2025. This indicates a growing disparity between the market value created and the capital invested, particularly between 2022 and 2024. The 2025 value, while lower than the peak, still represents a substantial return relative to invested capital.
The significant increase in the MVA spread ratio, coupled with the fluctuating MVA, suggests a period of heightened market confidence and value creation, followed by a partial correction. The relatively stable Invested Capital during this period implies that the changes in MVA and the MVA spread ratio are primarily driven by market perceptions of future earnings potential rather than substantial shifts in the capital base.
The decline in MVA observed in 2025, despite a high MVA spread ratio, warrants further investigation to determine the underlying factors contributing to this trend. Potential causes could include changing market conditions, increased competition, or shifts in investor sentiment.
MVA Margin
Booking Holdings Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks 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 ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited considerable fluctuation between 2021 and 2025. Initially decreasing from 2021 to 2022, MVA then demonstrated substantial growth through 2024 before experiencing a decline in the most recent year presented. Revenues consistently increased throughout the period, though the rate of growth varied. The MVA margin, calculated as MVA relative to Revenues, mirrored the volatility observed in MVA, showing significant swings over the five-year span.
- Market Value Added (MVA)
- In 2021, MVA stood at US$95,711 million. A decrease was noted in 2022, falling to US$88,030 million. Subsequently, MVA increased significantly, reaching US$137,052 million in 2023 and peaking at US$170,748 million in 2024. The final year, 2025, saw a reduction to US$141,483 million. This suggests a period of strong value creation followed by a partial reversal.
- Revenues
- Revenues increased steadily from US$10,958 million in 2021 to US$26,917 million in 2025. The largest absolute increase occurred between 2021 and 2022 (US$6,132 million), while the rate of increase slowed somewhat in later years, though remaining positive. This consistent revenue growth indicates a positive trend in the company’s sales performance.
- MVA Margin
- The MVA margin was exceptionally high in 2021 at 873.43%. It decreased substantially in 2022 to 515.10%, before recovering to 641.48% in 2023 and further increasing to 719.27% in 2024. The margin then declined in 2025 to 525.63%. The high margins suggest that the company generated substantial value relative to its revenue, although this relationship was not consistently maintained throughout the period. The fluctuations in the MVA margin are directly linked to the changes in both MVA and Revenues.
The observed patterns suggest a complex relationship between market valuation and revenue generation. While revenues consistently increased, the ability to translate those revenues into market value, as indicated by MVA, was not linear. The significant volatility in the MVA margin warrants further investigation to understand the underlying drivers of value creation and the factors contributing to the observed fluctuations.