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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MVA
Costco Wholesale Corp., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-08-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data exhibits clear upward trends in the market value and invested capital of the company over the analyzed periods. The market (fair) value has demonstrated significant growth, rising from approximately $171 billion to over $413 billion between the earliest and latest dates evaluated. This indicates a substantial increase in the company's valuation as perceived by the market.
Invested capital has also shown increases albeit with some fluctuations. Starting near $29 billion, it increased to nearly $38 billion by the latest period. Despite a slight dip in the September 1, 2024 period, overall trends suggest continued reinvestment or expansion activities by the company to support growth.
Market value added (MVA), a measure of value creation above invested capital, mirrors the strong upward direction seen in market value. The MVA started at roughly $142 billion and climbed to over $375 billion by the most recent period, highlighting effective utilization of invested capital and reinforcing the company’s capacity to generate shareholder value.
- Market (fair) value trends
- Consistent increase across all periods with notable acceleration from around 2023 onwards.
- Invested capital analysis
- Gradual growth with minor fluctuations; indicates steady capital investments supporting business operations.
- Market value added (MVA) observations
- Substantial rise proportionate to market value gains, affirming the company’s efficiency in creating value beyond invested capital.
MVA Spread Ratio
Costco Wholesale Corp., MVA spread ratio calculation, comparison to benchmarks
| Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Target Corp. | |||||||
| Walmart Inc. | |||||||
Based on: 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), 10-K (reporting date: 2020-08-30).
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.
- Market Value Added (MVA)
- The Market Value Added exhibited a consistent upward trajectory from 2020 through 2024. It increased from approximately 142 billion USD in 2020 to a peak of around 378 billion USD in 2024, reflecting a significant enhancement in market perception and value creation. However, in 2025, there was a slight decrease to about 376 billion USD, indicating a modest decline after several years of growth.
- Invested Capital
- The invested capital showed a gradual increase over the years, rising from approximately 29 billion USD in 2020 to nearly 38 billion USD in 2025. This increase was relatively steady, with a moderate dip in 2024 to about 33 billion USD before rebounding to its highest level in 2025. The trend suggests ongoing investment into the company’s assets and operations over the period analyzed.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the premium of market value over invested capital, demonstrated a strong positive trend overall. Starting at 488.89% in 2020, the ratio climbed significantly to a peak of 1145.79% in 2024, before decreasing to 989.1% in 2025. This pattern indicates increasing efficiency in value creation relative to invested capital until 2024, followed by a slight reduction in this efficiency in the subsequent year.
- Overall Insights
- The data portrays a company experiencing robust growth in market value that outpaces the growth in invested capital. The rise and subsequent moderate decline in the MVA spread ratio towards the end of the period highlight a strong initial increase in value creation efficiency, with a minor deceleration more recently. This could suggest either market adjustments or emerging challenges in maintaining the previous rates of value enhancement.
MVA Margin
Costco Wholesale Corp., MVA margin calculation, comparison to benchmarks
| Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Target Corp. | |||||||
| Walmart Inc. | |||||||
Based on: 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), 10-K (reporting date: 2020-08-30).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The annual financial data reveals several notable trends in key financial metrics over the reported periods.
- Market Value Added (MVA)
- The MVA shows a generally upward trajectory, increasing from approximately $142 billion in 2020 to $376 billion in 2025. There is steady growth observed each year, with a significant jump between 2023 and 2024, where the MVA rises from $224 billion to $378 billion. This increase suggests a substantial enhancement in the company's market valuation relative to its invested capital, reflecting positive market perception and value creation over time.
- Net Sales
- Net sales exhibit consistent growth throughout the period, increasing from about $163 billion in 2020 to nearly $270 billion by 2025. The year-over-year increases indicate solid revenue expansion, with the largest absolute increases occurring in the 2021-2022 and 2024-2025 intervals. This trend points to continued sales volume growth or pricing power, contributing positively to overall company performance.
- MVA Margin
- The MVA margin percentage fluctuates during the period but generally remains high, starting at roughly 87% in 2020 and reaching peaks over 150% in 2024 before slightly declining to 139% in 2025. The elevated margin levels in the latter years signify increased efficiency in generating market value relative to net sales, with the company's capacity to convert sales into market value exhibiting notable improvement, especially between 2023 and 2024.
Overall, the data indicates robust growth in both market value added and net sales, accompanied by an improving MVA margin, suggesting enhanced operational effectiveness and favorable investor sentiment. The company demonstrates strong financial momentum, with significant value creation reflected in the substantial increase in market valuation relative to its sales base over the analyzed periods.