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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- Analysis of Liquidity Ratios
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MVA
Vertex Pharmaceuticals Inc., MVA calculation
US$ in thousands
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 entity demonstrates a consistent upward trajectory throughout the observed period. Simultaneously, invested capital exhibits fluctuations, while market value added (MVA) mirrors the overall positive trend in market value. A detailed examination of these components reveals specific patterns and insights.
- Market Value
- The market value increased from US$62.42 billion in 2021 to US$119.65 billion in 2025. This represents a substantial cumulative growth of approximately 92.03% over the five-year period. The rate of increase appears to decelerate slightly between 2023 and 2025, although the value continues to rise.
- Invested Capital
- Invested capital initially increased from US$9.39 billion in 2021 to US$13.18 billion in 2022, and then to US$13.24 billion in 2023. A significant decrease is then observed in 2024, falling to US$9.05 billion, before partially recovering to US$10.58 billion in 2025. This fluctuation suggests potential shifts in capital allocation strategies or asset management practices.
- Market Value Added (MVA)
- MVA follows the upward trend of market value, increasing from US$53.03 billion in 2021 to US$109.07 billion in 2025. This represents a cumulative increase of approximately 105.74% over the period. The largest absolute increase in MVA occurred between 2022 and 2023, coinciding with a period of substantial market value growth. The rate of MVA increase slows down between 2023 and 2025, mirroring the deceleration in market value growth.
The relationship between invested capital and MVA is noteworthy. Despite the fluctuations in invested capital, MVA consistently remains significantly higher, indicating that the entity is generating substantial value beyond the capital invested. The decrease in invested capital in 2024 did not proportionally decrease MVA, suggesting efficient capital utilization or strong operational performance. Overall, the observed trends suggest a positive financial trajectory, characterized by increasing market valuation and effective value creation relative to invested capital.
MVA Spread Ratio
Vertex Pharmaceuticals Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
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 fluctuated over the same period. Consequently, the MVA spread ratio, calculated as MVA divided by Invested Capital, demonstrated significant variability.
- Market Value Added (MVA)
- MVA increased from US$53.03 million in 2021 to US$109.07 million in 2025. The most substantial year-over-year increase occurred between 2022 and 2023, with an addition of US$30.54 million. Growth slowed in subsequent years, with increases of US$10.50 million (2023-2024) and US$4.23 million (2024-2025).
- Invested Capital
- Invested Capital rose from US$9.39 million in 2021 to US$13.18 million in 2022, before remaining relatively stable at US$13.24 million in 2023. A notable decrease was observed in 2024, falling to US$9.05 million, followed by a recovery to US$10.58 million in 2025. This fluctuation suggests potential shifts in capital allocation or asset management strategies.
- MVA Spread Ratio
- The MVA spread ratio peaked in 2024 at 1,158.91%, indicating a substantial difference between the market value created and the capital invested. The ratio began at 564.91% in 2021, decreased to 484.09% in 2022, then increased sharply to 712.26% in 2023. While remaining high in 2025 at 1,030.46%, it represents a slight decrease from the 2024 peak. The ratio’s volatility correlates with the fluctuations in Invested Capital, demonstrating a strong inverse relationship; as Invested Capital decreased, the ratio increased, and vice versa.
The observed trends suggest that the entity is generating significant value relative to its invested capital, particularly in 2024. However, the fluctuations in both Invested Capital and the MVA spread ratio warrant further investigation to understand the underlying drivers and potential implications for future performance.
MVA Margin
Vertex Pharmaceuticals Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
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 a consistent upward trajectory between 2021 and 2025. Revenues also increased steadily throughout the period. However, the MVA margin, while generally high, demonstrated some fluctuation.
- Market Value Added (MVA)
- The MVA increased from US$53.03 billion in 2021 to US$109.07 billion in 2025, representing a substantial overall growth. The largest absolute increase occurred between 2022 and 2023, adding US$30.54 billion to the MVA. Growth slowed in subsequent years, with increases of US$10.50 billion between 2023 and 2024, and US$4.23 billion between 2024 and 2025.
- Revenues
- Revenues increased consistently from US$7.57 billion in 2021 to US$12.00 billion in 2025. The rate of revenue growth was relatively stable, with annual increases ranging from approximately US$1.36 billion to US$2.14 billion. This consistent revenue growth likely contributed to the overall increase in MVA.
- MVA Margin
- The MVA margin began at 700.10% in 2021 and peaked at 955.82% in 2023. A slight decrease to 951.31% was observed in 2024, followed by a more noticeable decline to 908.79% in 2025. While remaining exceptionally high throughout the period, the decreasing trend in the MVA margin from 2023 onwards suggests that MVA growth is not keeping pace with revenue growth as effectively as it previously was. This could indicate increasing costs, reduced profitability, or shifts in investor expectations.
In summary, the organization experienced significant growth in both MVA and revenues. The MVA margin, while consistently high, showed a recent softening, warranting further investigation to understand the underlying drivers of this trend.