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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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) 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, consequently, market value added. Initial observations reveal a decrease in market value followed by substantial growth, and then 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$110,711 million in 2021 to US$101,673 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$183,722 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 was observed in 2024, reaching US$12,973 million, but this was followed by a marginal decrease to US$12,912 million in 2025. The relatively stable invested capital in the final two years suggests a potential stabilization of capital allocation strategies.
- Market Value Added (MVA)
- The MVA initially decreased from US$95,707 million in 2021 to US$88,031 million in 2022, mirroring the decline in market value. A substantial increase in MVA was then observed, rising to US$170,749 million in 2024, driven by the significant growth in market value. Similar to the market value, MVA decreased in 2025 to US$141,483 million, suggesting a correlation between overall market perception and the value created for investors. The magnitude of MVA consistently exceeds invested capital throughout the period, indicating a positive return on capital employed.
The relationship between market value and MVA is strong, with changes in one directly influencing the other. The decrease in both metrics in 2025 warrants further investigation to determine the underlying causes and potential implications for future performance. The stabilization of invested capital towards the end of the period may indicate a strategic shift in capital management.
MVA Spread Ratio
Booking Holdings Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. While initially decreasing from 2021 to 2022, MVA demonstrated substantial growth in the subsequent years, peaking in 2024 before experiencing a decline in 2025. Invested capital generally decreased from 2021 to 2023, followed by modest increases in 2024 and 2025, remaining relatively stable in the latter two years. The MVA spread ratio, calculated as MVA divided by Invested Capital, consistently remained high throughout the period, indicating a significant premium placed on the company’s value creation relative to its invested capital.
- Market Value Added (MVA)
- MVA began at US$95,707 million in 2021, decreasing to US$88,031 million in 2022. A significant increase was then observed, with MVA reaching US$137,052 million in 2023 and further growing to US$170,749 million in 2024. However, MVA decreased to US$141,483 million in 2025, representing a decline from its peak but still remaining above the 2021 and 2022 levels.
- Invested Capital
- Invested capital decreased from US$15,004 million in 2021 to US$13,642 million in 2022, and continued to decline to US$11,415 million in 2023. A slight recovery occurred in 2024, with invested capital rising to US$12,973 million, and remained relatively stable at US$12,912 million in 2025.
- MVA Spread Ratio
- The MVA spread ratio was 637.88% in 2021 and 645.29% in 2022, indicating a high level of value creation relative to invested capital. The ratio increased substantially to 1,200.63% in 2023 and peaked at 1,316.19% in 2024. While decreasing to 1,095.75% in 2025, the ratio remained significantly higher than the values observed in 2021 and 2022. This suggests that the company continued to generate substantial returns on its invested capital throughout the period, despite fluctuations in MVA and invested capital.
The observed trends suggest a period of dynamic value creation, with significant growth in MVA between 2022 and 2024. The consistent elevation of the MVA spread ratio throughout the period underscores the company’s ability to generate substantial value relative to its capital base. The decline in MVA in 2025, coupled with relatively stable invested capital, resulted in a decreased, but still substantial, MVA spread ratio.
MVA Margin
Booking Holdings Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. Initial values decreased before experiencing substantial growth, followed by a decline in the most recent year observed. Revenues demonstrated a consistent upward trajectory throughout the period. The MVA margin, calculated from these figures, mirrored the volatility of the MVA, showing significant swings over the five years.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$95,707 million. A decrease was noted in 2022, falling to US$88,031 million. A significant recovery and expansion occurred in 2023, with the MVA reaching US$137,052 million. Further growth was observed in 2024, peaking at US$170,749 million. However, the MVA experienced a decline in 2025, settling at US$141,483 million. This suggests potential sensitivity to market conditions or company-specific factors.
- Revenues
- Revenues increased steadily from US$10,958 million in 2021 to US$26,917 million in 2025. The year-over-year growth was consistent, indicating a positive trend in the company’s top-line performance. The largest absolute increase occurred between 2021 and 2022, followed by a more moderate, but still positive, growth rate in subsequent years.
- MVA Margin
- The MVA margin was exceptionally high in 2021 at 873.40%. It decreased substantially in 2022 to 515.10%. A partial recovery was seen in 2023, reaching 641.48%, followed by a further increase to 719.28% in 2024. The margin then decreased significantly in 2025 to 525.63%. The MVA margin’s volatility suggests that changes in MVA are disproportionately impacting the margin, and that the relationship between MVA and revenue is not constant.
The divergence between the increasing revenue and the fluctuating MVA suggests that factors beyond revenue generation, such as cost of capital or investor expectations, are significantly influencing the company’s market valuation. The decline in MVA margin in the final year, despite continued revenue growth, warrants further investigation.