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
United Airlines 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 market value of the company exhibited volatility over the five-year period. Beginning at US$57,524 million in 2021, it decreased to US$42,253 million in 2022 before a slight recovery to US$42,558 million in 2023. A substantial increase was then observed in 2024, reaching US$57,868 million, followed by a further increase to US$60,313 million in 2025.
Invested capital followed a different trajectory. It decreased from US$52,534 million in 2021 to US$41,357 million in 2022. Subsequent years showed increases, reaching US$45,532 million in 2023, US$49,435 million in 2024, and US$50,212 million in 2025. The rate of increase in invested capital slowed between 2024 and 2025.
- Market Value Added (MVA)
- The MVA demonstrated significant fluctuations. A value of US$4,990 million was recorded in 2021, declining sharply to US$896 million in 2022. In 2023, the MVA became negative, reaching -US$2,974 million, indicating that the value created for shareholders was less than the invested capital. A substantial positive swing occurred in 2024, with MVA rising to US$8,433 million, and continued to increase in 2025, reaching US$10,101 million. This suggests a strengthening ability to generate value for shareholders in the latter part of the period.
The divergence between the market value and invested capital trends is particularly evident in 2023, where the market value slightly increased while the MVA became negative. This suggests that investor expectations relative to invested capital decreased during that year. The positive correlation between the increases in market value and MVA in 2024 and 2025 indicates improved shareholder value creation as the market recognized the benefits of the invested capital.
Overall, the period began with positive value creation, experienced a period of value destruction in 2023, and then transitioned to a period of increasing value creation in 2024 and 2025. The increasing MVA in the final two years suggests improving financial performance and investor confidence.
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MVA Spread Ratio
United Airlines Holdings Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 10,101) | 8,433) | (2,974) | 896) | 4,990) | |
| Invested capital2 | 50,212) | 49,435) | 45,532) | 41,357) | 52,534) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 20.12% | 17.06% | -6.53% | 2.17% | 9.50% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | 24.99% | 56.50% | 43.85% | 39.69% | 83.76% | |
| Uber Technologies Inc. | 812.97% | 1,005.24% | 1,007.53% | 372.72% | 331.50% | |
| Union Pacific Corp. | 178.37% | 178.57% | 196.13% | 160.12% | 224.50% | |
| United Parcel Service Inc. | 149.09% | 155.52% | 230.88% | 287.06% | 373.66% | |
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 × 10,101 ÷ 50,212 = 20.12%
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations over the observed period. Initially positive, it declined substantially before recovering strongly in subsequent years. This movement is reflected in the MVA spread ratio, which demonstrates a corresponding pattern of volatility.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$4,990 million. A considerable decrease was noted in 2022, falling to US$896 million. This downward trend continued into 2023, resulting in a negative MVA of -US$2,974 million. However, a substantial recovery occurred in 2024, with MVA increasing to US$8,433 million, and further growth was observed in 2025, reaching US$10,101 million.
- Invested Capital
- Invested capital decreased from US$52,534 million in 2021 to US$41,357 million in 2022. A moderate increase followed in 2023, reaching US$45,532 million. Continued growth was observed in 2024 and 2025, with invested capital reaching US$49,435 million and US$50,212 million respectively. The growth in invested capital appears to have accelerated alongside the recovery in MVA.
- MVA Spread Ratio
- The MVA spread ratio mirrored the trends in MVA. It began at 9.50% in 2021, declining to 2.17% in 2022. A negative ratio of -6.53% was recorded in 2023, indicating that the value created for investors was less than the capital invested. The ratio then experienced a significant increase, reaching 17.06% in 2024 and further rising to 20.12% in 2025. This suggests an improving ability to generate value for shareholders relative to the capital employed.
The correlation between MVA and the MVA spread ratio is evident. The substantial recovery in both metrics from 2023 to 2025 suggests a period of improved performance and value creation. The increasing MVA spread ratio indicates that the company is becoming more efficient at generating returns on its invested capital.
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MVA Margin
United Airlines Holdings Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 10,101) | 8,433) | (2,974) | 896) | 4,990) | |
| Operating revenue | 59,070) | 57,063) | 53,717) | 44,955) | 24,634) | |
| Add: Increase (decrease) in frequent flyer deferred revenue | 336) | 298) | 468) | 393) | 307) | |
| Adjusted operating revenue | 59,406) | 57,361) | 54,185) | 45,348) | 24,941) | |
| Performance Ratio | ||||||
| MVA margin2 | 17.00% | 14.70% | -5.49% | 1.98% | 20.01% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | 20.00% | 45.27% | 33.82% | 28.21% | 64.08% | |
| Uber Technologies Inc. | 246.47% | 341.36% | 423.49% | 191.05% | 305.35% | |
| Union Pacific Corp. | 463.15% | 456.88% | 500.31% | 384.62% | 599.66% | |
| United Parcel Service Inc. | 85.16% | 82.22% | 115.39% | 128.11% | 170.51% | |
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 ÷ Adjusted operating revenue
= 100 × 10,101 ÷ 59,406 = 17.00%
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations over the five-year period. Initially positive, it experienced a substantial decline before recovering strongly in subsequent years. This movement is reflected in the MVA margin, which demonstrates a corresponding pattern of volatility.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$4,990 million. A considerable decrease was observed in 2022, falling to US$896 million. This downward trend continued into 2023, resulting in a negative MVA of -US$2,974 million. However, a strong recovery commenced in 2024, with MVA reaching US$8,433 million, and further increasing to US$10,101 million in 2025. This indicates a substantial improvement in value creation for shareholders in the latter part of the period.
- Adjusted Operating Revenue
- Adjusted operating revenue demonstrated a consistent upward trajectory throughout the period. Starting at US$24,941 million in 2021, it increased to US$45,348 million in 2022, US$54,185 million in 2023, US$57,361 million in 2024, and finally reached US$59,406 million in 2025. This consistent growth in revenue likely contributed to the eventual recovery in MVA.
- MVA Margin
- The MVA margin mirrored the fluctuations in MVA. It began at a high of 20.01% in 2021, then decreased significantly to 1.98% in 2022. The margin turned negative in 2023, reaching -5.49%. A substantial improvement occurred in 2024, with the margin rising to 14.70%, and continuing to increase to 17.00% in 2025. The positive correlation between MVA and MVA margin suggests that changes in MVA are proportionally related to adjusted operating revenue.
The period demonstrates a clear shift from value creation in 2021 to value destruction in 2023, followed by a robust recovery and increasing value creation in 2024 and 2025. The growth in adjusted operating revenue appears to be a key driver of the improved MVA and MVA margin in the later years.
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