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
AT&T 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 period under review demonstrates significant fluctuations in market value added (MVA). Initially, the MVA is negative, indicating that the market perceives the company’s returns as insufficient to cover its cost of capital. However, a positive trend emerges in the later years of the period.
- Market Value of AT&T
- The market value of the company experienced a substantial decrease from 2021 to 2022, declining from US$413,215 million to US$290,999 million. This decline continued, albeit at a slower pace, reaching US$286,944 million in 2023. A recovery is then observed, with the market value increasing to US$332,796 million in 2024 and further to US$357,894 million in 2025. This suggests a shift in investor sentiment or improved market conditions impacting the company’s valuation.
- Invested Capital
- Invested capital initially decreased from US$439,195 million in 2021 to US$309,447 million in 2022. It then increased to US$326,144 million in 2023 before decreasing again to US$314,065 million in 2024. A final increase is noted in 2025, reaching US$337,331 million. These fluctuations may reflect changes in capital expenditure, asset sales, or financing activities.
- Market Value Added (MVA)
- The MVA begins at a negative value of -US$25,980 million in 2021, indicating that the market value created is less than the invested capital. This negative trend continues in 2022, reaching -US$18,448 million. The MVA then experiences a more pronounced decline to -US$39,200 million in 2023, representing the lowest point in the observed period. A significant turnaround occurs in 2024, with the MVA becoming positive at US$18,731 million. This positive trend is sustained in 2025, with the MVA increasing to US$20,563 million. The shift from negative to positive MVA suggests that the company’s market value creation has surpassed its invested capital in the later years.
The convergence of increasing market value and relatively stable invested capital contributes to the positive MVA observed in 2024 and 2025. The substantial improvement in MVA from 2023 to 2024 warrants further investigation to understand the underlying drivers of this change.
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MVA Spread Ratio
AT&T Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 20,563) | 18,731) | (39,200) | (18,448) | (25,980) | |
| Invested capital2 | 337,331) | 314,065) | 326,144) | 309,447) | 439,195) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 6.10% | 5.96% | -12.02% | -5.96% | -5.92% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| T-Mobile US Inc. | 74.28% | 97.31% | 59.31% | 50.31% | 44.34% | |
| Verizon Communications Inc. | 17.45% | 8.93% | 11.71% | 11.26% | 45.66% | |
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 × 20,563 ÷ 337,331 = 6.10%
4 Click competitor name to see calculations.
The analysis reveals a significant shift in Market Value Added (MVA) over the five-year period. Initially negative, MVA transitions to positive values, accompanied by corresponding changes in the MVA spread ratio.
- Market Value Added (MVA)
- MVA demonstrates a volatile pattern. It begins with a negative value of -25,980 in 2021, improves to -18,448 in 2022, then declines sharply to -39,200 in 2023. A substantial positive swing occurs in 2024, with MVA reaching 18,731, and continues to increase modestly to 20,563 in 2025. This indicates a growing difference between the company’s market value and its invested capital, moving from value destruction to value creation.
- Invested Capital
- Invested capital experiences a decrease from 439,195 in 2021 to 309,447 in 2022. It then stabilizes, fluctuating between 314,065 and 337,331 from 2023 to 2025. The initial decline suggests potential divestitures or a reduction in capital expenditure, while the subsequent stability indicates a more consistent capital base.
- MVA Spread Ratio
- The MVA spread ratio mirrors the trend in MVA. It is negative from 2021 to 2023, reaching a low of -12.02 in 2023, signifying that the MVA is a substantial negative percentage of invested capital. The ratio turns positive in 2024 at 5.96, and increases slightly to 6.10 in 2025. This positive shift indicates that the MVA is now a meaningful positive percentage of invested capital, reflecting improved shareholder value creation relative to capital employed.
The substantial improvement in both MVA and the MVA spread ratio from 2023 to 2025 suggests a successful turnaround in value creation. The company’s ability to generate positive MVA, as reflected in the increasing spread ratio, is a positive indicator of financial performance.
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MVA Margin
AT&T 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 | 20,563) | 18,731) | (39,200) | (18,448) | (25,980) | |
| Operating revenues | 125,648) | 122,336) | 122,428) | 120,741) | 168,864) | |
| Performance Ratio | ||||||
| MVA margin2 | 16.37% | 15.31% | -32.02% | -15.28% | -15.39% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| T-Mobile US Inc. | 166.19% | 223.18% | 140.53% | 117.87% | 102.11% | |
| Verizon Communications Inc. | 41.62% | 20.40% | 26.61% | 24.82% | 99.10% | |
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 ÷ Operating revenues
= 100 × 20,563 ÷ 125,648 = 16.37%
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations over the five-year period. Initially negative, the MVA transitioned to positive values in the later years of the observed timeframe. This shift is accompanied by corresponding changes in the MVA margin, which reflects the MVA as a percentage of operating revenues.
- Market Value Added (MVA)
- The MVA began at -US$25,980 million in 2021, decreased to -US$39,200 million in 2023, representing the lowest point during the period. A substantial increase was then observed, with the MVA reaching US$18,731 million in 2024 and further growing to US$20,563 million in 2025. This indicates a considerable improvement in the company’s value creation as perceived by the market.
- Operating Revenues
- Operating revenues experienced a decline from US$168,864 million in 2021 to US$120,741 million in 2022. Revenues stabilized in subsequent years, fluctuating between US$122,428 million and US$125,648 million from 2022 through 2025. The relative stability in revenue during the latter part of the period contrasts with the significant changes observed in MVA.
- MVA Margin
- The MVA margin mirrored the trend in MVA, starting at -15.39% in 2021 and reaching a low of -32.02% in 2023. A marked positive shift occurred in 2024, with the margin rising to 15.31%, and continuing to increase to 16.37% in 2025. This suggests that the company is generating increasing value relative to its revenue base. The substantial difference between the 2023 and 2024 margins highlights a significant turnaround in value creation efficiency.
The observed pattern suggests that while operating revenues remained relatively stable after 2022, changes in market perception and investor confidence significantly impacted the MVA and, consequently, the MVA margin. The transition from negative to positive MVA and margin values indicates a strengthening of the company’s financial position and its ability to generate value for its shareholders.
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