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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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2012
- Total Asset Turnover since 2012
- Price to Book Value (P/BV) since 2012
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MVA
AbbVie 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 demonstrates an overall upward trajectory throughout the observed period. While a decrease is noted between 2021 and 2022, subsequent years exhibit consistent growth, culminating in a substantial increase by the end of 2025. Invested capital, conversely, generally decreased from 2021 to 2023, showing a slight increase in 2024 before declining again in 2025. Market value added (MVA) mirrors the trend of the market value, with a consistent increase over the five-year period.
- Market Value Trend
- The market value experienced a decline from US$339,217 million in 2021 to US$326,390 million in 2022, representing a decrease of approximately 3.8%. However, the market value rebounded strongly, increasing to US$367,593 million in 2023, US$403,964 million in 2024, and reaching US$462,925 million in 2025. This represents an overall increase of approximately 36.4% from 2021 to 2025.
- Invested Capital Trend
- Invested capital decreased significantly from US$95,922 million in 2021 to US$68,204 million in 2023, a reduction of approximately 28.9%. A modest increase was observed in 2024, with invested capital reaching US$69,263 million, but this was followed by a further decrease to US$61,356 million in 2025. The overall trend indicates a reduction in the amount of capital employed by the company over the period.
- Market Value Added (MVA) Trend
- MVA exhibited a consistent upward trend throughout the period. Starting at US$243,295 million in 2021, it increased to US$244,256 million in 2022, US$299,389 million in 2023, US$334,701 million in 2024, and ultimately reached US$401,569 million in 2025. This represents an overall increase of approximately 65.1% from 2021 to 2025. The consistent growth in MVA suggests the company is generating value for its investors.
The divergence between the trends in invested capital and market value suggests increasing efficiency in capital utilization. The company appears to be generating greater market value with a decreasing amount of invested capital, as evidenced by the rising MVA. Further investigation into the drivers of these trends would be beneficial.
MVA Spread Ratio
AbbVie Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| 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. | ||||||
| Vertex Pharmaceuticals 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) and associated metrics demonstrate a consistent upward trajectory over the five-year period. While Invested Capital decreased over the same timeframe, the MVA spread ratio experienced substantial growth, indicating increasing efficiency in value creation relative to capital employed.
- Market Value Added (MVA)
- The MVA exhibited a steady increase from US$243,295 million in 2021 to US$401,569 million in 2025. Growth was particularly pronounced between 2022 and 2023 (US$55,133 million) and again between 2023 and 2024 (US$35,312 million), suggesting accelerating value creation. The largest absolute increase occurred between 2024 and 2025, adding US$66,868 million to the MVA.
- Invested Capital
- In contrast to MVA, Invested Capital decreased from US$95,922 million in 2021 to US$61,356 million in 2025. The most significant reduction occurred between 2021 and 2022 (US$13,788 million) and between 2022 and 2023 (US$13,930 million). The rate of decline slowed in subsequent years, with a smaller decrease observed between 2024 and 2025 (US$7,907 million). This suggests a potential shift in capital allocation strategy or increased efficiency in capital utilization.
- MVA Spread Ratio
- The MVA spread ratio, calculated as MVA divided by Invested Capital, increased dramatically throughout the period. Starting at 253.64% in 2021, it rose to 654.49% in 2025. This substantial increase indicates that the company is generating significantly more value for each dollar of invested capital. The largest percentage point increase occurred between 2023 and 2024 (44.27 percentage points), and again between 2024 and 2025 (171.26 percentage points). The accelerating growth of this ratio, coupled with the decreasing Invested Capital, highlights a substantial improvement in the efficiency of value creation.
The observed trends suggest a company that is becoming increasingly effective at generating value with a decreasing capital base. The substantial growth in the MVA spread ratio warrants further investigation to understand the underlying drivers of this improved performance.
MVA Margin
AbbVie Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| 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. | ||||||
| Vertex Pharmaceuticals 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 ÷ Net revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a consistent upward trajectory between 2021 and 2025. Simultaneously, the MVA margin demonstrated a significant and accelerating increase over the same period. A detailed examination of these trends follows.
- Market Value Added (MVA)
- The MVA began at US$243,295 million in 2021 and increased to US$401,569 million by 2025. While there was a modest increase from 2021 to 2022, the growth rate accelerated notably from 2022 to 2023, and continued to strengthen through 2025. This suggests increasing investor confidence and value creation over time.
- Net Revenues
- Net revenues experienced an initial increase from US$56,197 million in 2021 to US$58,054 million in 2022. However, a decrease was observed in 2023, with revenues falling to US$54,318 million. Revenues then recovered in 2024 to US$56,334 million, and continued to rise to US$61,160 million in 2025. The revenue trend, while fluctuating, ultimately demonstrates positive growth over the five-year period.
- MVA Margin
- The MVA margin began at 432.93% in 2021 and increased substantially to 656.59% in 2025. The margin experienced a slight decrease from 2021 to 2022, but then exhibited a dramatic increase from 420.74% to 551.18% between 2022 and 2023. This upward trend continued, with further increases to 594.14% in 2024 and 656.59% in 2025. The accelerating growth of the MVA margin, despite fluctuations in net revenues, indicates that the company is becoming increasingly efficient at generating value for its investors relative to its revenue.
The divergence between the revenue trend and the MVA margin suggests that factors beyond revenue growth, such as improved operational efficiency, cost management, or shifts in investor expectations, are significantly contributing to the increasing MVA and its margin. The substantial increase in the MVA margin warrants further investigation to understand the underlying drivers of this performance.