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
Costco Wholesale Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of market value added reveals a substantial increase in the premium the market assigns to the entity over its invested capital between 2021 and 2026, indicating significant value creation from a shareholder perspective.
- Market Value Trajectory
- A consistent upward trend in fair market value is observed, beginning at US$ 209,734 million in 2021 and increasing to US$ 426,153 million by 2026. The most significant acceleration occurred between 2023 and 2024, where the valuation rose from US$ 258,661 million to US$ 411,024 million, representing a sharp increase in market capitalization before entering a phase of moderate growth in 2025 and 2026.
- Invested Capital Dynamics
- Invested capital generally increased over the analyzed period, rising from US$ 28,508 million in 2021 to US$ 44,219 million in 2026. A brief contraction was noted in 2024, with capital decreasing to US$ 32,993 million from a previous peak of US$ 34,903 million in 2023, followed by a renewed and more aggressive expansion in the final two years.
- Market Value Added (MVA) Analysis
- The MVA grew from US$ 181,226 million in 2021 to US$ 381,934 million in 2026. The growth in MVA closely mirrors the trajectory of the market value, with a primary surge occurring in 2024. The fact that MVA remains several magnitudes higher than the invested capital suggests that the market perceives the entity's ability to generate future returns as far exceeding the cost of the capital employed.
Overall, the data demonstrates a widening gap between the capital invested in the business and its market valuation, reflecting strong investor confidence and a high perceived efficiency in value generation.
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MVA Spread Ratio
Costco Wholesale Corp., MVA spread ratio calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 381,934) | 375,818) | 378,031) | 223,758) | 190,462) | 181,226) | |
| Invested capital2 | 44,219) | 37,996) | 32,993) | 34,903) | 31,671) | 28,508) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 863.73% | 989.10% | 1,145.79% | 641.08% | 601.38% | 635.70% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Target Corp. | 94.26% | 88.12% | 179.94% | 210.89% | 289.75% | 247.97% | |
| Walmart Inc. | 518.83% | 364.30% | 257.71% | 195.10% | 201.42% | 174.24% | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 MVA. See details »
2 Invested capital. See details »
3 2026 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 381,934 ÷ 44,219 = 863.73%
4 Click competitor name to see calculations.
The financial trajectory between August 2021 and August 2026 indicates a substantial expansion in market value creation, characterized by a significant surge in value in 2024 followed by a period of stabilization and increased capital investment.
- Market Value Added (MVA)
- A consistent upward trend in MVA is observed from 2021 to 2023, rising from 181,226 million USD to 223,758 million USD. A sharp acceleration occurred in 2024, where MVA peaked at 378,031 million USD, representing a significant increase in the premium the market assigned to the entity over its invested capital. For the remaining period ending in 2026, the value remained relatively stable, concluding at 381,934 million USD.
- Invested Capital
- Invested capital exhibited a general growth pattern, increasing from 28,508 million USD in 2021 to 44,219 million USD by 2026. A marginal contraction was noted in 2024, with capital decreasing to 32,993 million USD from the previous year's 34,903 million USD. This was followed by a period of aggressive capital deployment, with the most significant increase occurring between 2025 and 2026.
- MVA Spread Ratio
- The MVA spread ratio remained relatively stable between 601.38% and 641.08% from 2021 through 2023. A dramatic spike to 1,145.79% was recorded in 2024, driven by the simultaneous increase in MVA and the slight reduction in invested capital. Following this peak, a downward trend is observed in 2025 and 2026, with the ratio declining to 863.73%. This decline is attributed to the rapid growth of invested capital outpacing the growth rate of MVA during the final two years of the period.
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MVA Margin
Costco Wholesale Corp., MVA margin calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 381,934) | 375,818) | 378,031) | 223,758) | 190,462) | 181,226) | |
| Net sales | 297,247) | 269,912) | 249,625) | 237,710) | 222,730) | 192,052) | |
| Performance Ratio | |||||||
| MVA margin2 | 128.49% | 139.24% | 151.44% | 94.13% | 85.51% | 94.36% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Target Corp. | 34.02% | 29.86% | 57.47% | 58.41% | 82.41% | 80.82% | |
| Walmart Inc. | 128.29% | 87.10% | 62.31% | 48.16% | 55.42% | 51.59% | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 MVA. See details »
2 2026 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 381,934 ÷ 297,247 = 128.49%
3 Click competitor name to see calculations.
The financial performance from August 2021 to August 2026 reveals a significant expansion in both market valuation and operational scale, although the efficiency of value creation relative to sales experienced notable volatility.
- Market Value Added (MVA) Trends
- A sustained upward trajectory is observed in MVA, which grew from 181,226 million US dollars in 2021 to 381,934 million US dollars by 2026. The most pronounced increase occurred between September 2023 and September 2024, during which MVA rose by approximately 68.9%, marking a period of rapid market value appreciation.
- Net Sales Growth
- Net sales demonstrated consistent and linear growth throughout the analyzed period. Revenue increased from 192,052 million US dollars in 2021 to 297,247 million US dollars in 2026, indicating a steady expansion of the company's top-line performance.
- MVA Margin Analysis
- The MVA margin exhibited significant fluctuations, characterized by an initial dip to 85.51% in 2022 followed by a sharp peak of 151.44% in 2024. Following this peak, a gradual decline is observed, with the margin contracting to 139.24% in 2025 and further to 128.49% in 2026. This indicates that while absolute market value remained elevated, the growth in market value did not keep pace with the growth in net sales during the final two years of the period.
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