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
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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MVA
Linde plc, 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 demonstrates a consistent upward trajectory throughout the observed period. Invested capital also increased, though at a slower rate than the market value. Consequently, market value added (MVA) exhibited substantial growth, indicating increasing shareholder wealth creation.
- Market Value
- The market value increased from US$165,688 million in 2021 to US$263,679 million in 2025. Growth was particularly strong between 2022 and 2023, with an increase of US$47,853 million. While growth continued in subsequent years, the rate of increase moderated.
- Invested Capital
- Invested capital experienced a more modest increase, rising from US$72,560 million in 2021 to US$80,195 million in 2025. The increase between 2021 and 2022 was minimal, and growth remained relatively consistent throughout the period, though lower than the growth in market value.
- Market Value Added (MVA)
- MVA increased significantly from US$93,128 million in 2021 to US$183,484 million in 2025. The largest absolute increase in MVA occurred between 2022 and 2023, mirroring the trend in market value. The rate of MVA growth slowed between 2023 and 2025, but remained positive. This suggests that the company is generating returns on invested capital that exceed its cost of capital, resulting in value creation for shareholders.
The widening gap between market value and invested capital, as reflected in the increasing MVA, suggests improving operational efficiency and/or successful capital allocation strategies. The consistent positive trend in MVA indicates a sustained ability to generate value for investors over the five-year period.
MVA Spread Ratio
Linde plc, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Sherwin-Williams Co. | ||||||
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 a consistent upward trajectory between 2021 and 2025. Simultaneously, Invested Capital also increased over the same period, though at a comparatively slower rate. This differential growth is reflected in the MVA spread ratio, which demonstrates a significant and sustained expansion.
- Market Value Added (MVA)
- MVA increased from US$93,128 million in 2021 to US$183,484 million in 2025, representing a cumulative growth of approximately 96.5%. The largest absolute increase occurred between 2022 and 2023 (US$46,785 million), although the rate of increase moderated in 2024 before resuming in 2025.
- Invested Capital
- Invested Capital showed a more modest increase, moving from US$72,560 million in 2021 to US$80,195 million in 2025. Growth was relatively stable year-over-year, with the largest increase observed between 2024 and 2025 (US$5,311 million). The slower growth in invested capital compared to MVA suggests increasing efficiency in capital allocation or a higher return on invested capital.
- MVA Spread Ratio
- The MVA spread ratio, calculated as MVA divided by Invested Capital, increased substantially from 128.35% in 2021 to 228.80% in 2025. This indicates that the value created for shareholders (MVA) is growing at a faster pace than the capital invested in the business. The ratio peaked at 223.74% in 2023, experienced a slight decrease in 2024, and then increased again in 2025. The consistent upward trend suggests a strengthening ability to generate value relative to capital employed.
Overall, the observed trends suggest a positive performance dynamic. The company is effectively translating invested capital into increased market value, as evidenced by the expanding MVA spread ratio. The sustained growth in MVA, coupled with a more moderate increase in invested capital, points to improved value creation efficiency.
MVA Margin
Linde plc, MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Sherwin-Williams Co. | ||||||
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) and associated MVA margin demonstrate a consistent upward trajectory over the five-year period. MVA increased substantially from US$93.128 billion in 2021 to US$183.484 billion in 2025. Sales exhibited more moderate growth, fluctuating slightly before reaching US$33.986 billion in 2025, compared to US$30.793 billion in 2021.
- Market Value Added (MVA)
- MVA experienced significant growth throughout the period. The largest absolute increase occurred between 2022 and 2023, adding US$46.785 billion. Growth slowed between 2023 and 2024, with an increase of US$1.982 billion, but resumed a higher rate of growth between 2024 and 2025, adding US$17.257 billion. This suggests periods of accelerated value creation followed by stabilization and renewed expansion.
- Sales
- Sales showed a relatively stable pattern of growth. A slight decrease was observed between 2022 and 2023, falling from US$33.364 billion to US$32.854 billion. However, sales recovered in subsequent years, reaching US$33.986 billion in 2025. The growth in sales, while positive, was considerably less pronounced than the growth in MVA.
- MVA Margin
- The MVA margin increased dramatically from 302.43% in 2021 to 539.88% in 2025. This indicates that the company is generating an increasingly larger amount of value relative to its sales. The most substantial increase in margin occurred between 2022 and 2023, rising from 352.06% to 499.92%. The margin continued to climb, albeit at a decreasing rate, reaching 503.64% in 2024 and 539.88% in 2025. The consistently high and increasing MVA margin suggests efficient capital allocation and strong profitability relative to revenue.
The divergence between sales growth and MVA growth, coupled with the increasing MVA margin, suggests that factors beyond revenue generation are significantly contributing to value creation. These factors could include improved operational efficiency, effective cost management, or positive market perceptions influencing the company’s valuation.