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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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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MVA
Abbott Laboratories, MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Abbott
- The market value experienced a decline from 241,657 million US dollars at the end of 2020 to 202,618 million US dollars by the end of 2022. This downward trend indicates a reduction in investor valuation or market capitalization over this period. However, from 2022 onwards, the market value showed a recovery, increasing to 213,306 million US dollars in 2023 and further rising to 248,418 million US dollars by the end of 2024, surpassing the initial 2020 value.
- Invested capital
- Invested capital remained relatively stable throughout the period, with minor fluctuations. It started at 60,387 million US dollars in 2020, slightly increased to 62,076 million US dollars in 2021, then declined gradually to 59,651 million US dollars in 2023 before a modest increase to 60,065 million US dollars in 2024. This stability suggests a consistent level of capital investment by the company over the five-year span.
- Market value added (MVA)
- The market value added followed a pattern similar to the market value. Starting at 181,270 million US dollars in 2020, it decreased to 141,330 million US dollars by 2022, reflecting a reduced premium of market value over invested capital during that timeframe. The MVA then increased again, reaching 153,655 million US dollars in 2023 and further improving to 188,353 million US dollars in 2024. This upward movement in recent years signals a growing market perception of value creation beyond the invested capital base.
MVA Spread Ratio
Abbott Laboratories, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data presents a multi-year perspective on key value creation metrics, revealing significant trends and fluctuations over the five-year period.
- Market Value Added (MVA)
- The MVA experienced a decrease from 181,270 million US dollars at the end of 2020 to 141,330 million by the end of 2022, indicating a decline in the company's market value relative to the invested capital during this time. However, the trend reversed subsequently, with MVA rising to 188,353 million by the end of 2024. This recovery suggests renewed investor confidence or improved market perception of the company’s value.
- Invested Capital
- Invested capital exhibited relatively minor fluctuations, beginning at 60,387 million US dollars in 2020, peaking slightly at 62,076 million in 2021, and then gradually decreasing to 59,651 million by 2023 before stabilizing around 60,065 million in 2024. This relative stability implies consistent levels of capital deployment and asset investment throughout the period.
- MVA Spread Ratio
- The MVA spread ratio, which measures the percentage difference between the company's market value and its invested capital, followed a pattern similar to MVA. It started high at 300.18% in 2020, declined to a low of 230.6% in 2022, and then sharply increased to 313.58% by the end of 2024. The dip through 2022 aligns with the lowered MVA, signifying a period of diminished value creation relative to capital invested, while the surge in 2024 indicates improved value generation and a strong enhancement in the company’s market valuation efficiency.
Overall, the data highlights a challenging phase during 2021-2022 characterized by lower market valuation relative to capital invested, followed by a robust recovery period through 2023 and 2024. The modest changes in invested capital alongside sharp movements in market value indicate that value creation fluctuations were driven more by market perceptions and operational performance rather than by capital investment changes.
MVA Margin
Abbott Laboratories, MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibits a fluctuating trend over the analyzed period. Beginning at 181,270 million US dollars at the end of 2020, it decreased notably to 165,604 million in 2021 and further to 141,330 million in 2022. Subsequently, it experienced a recovery, rising to 153,655 million in 2023 and reaching 188,353 million by the end of 2024, surpassing the initial 2020 value.
- Net Sales
- Net sales showed an overall increasing trend but with some variability. From 34,608 million US dollars in 2020, net sales climbed significantly to 43,075 million in 2021, then grew marginally to 43,653 million in 2022. However, a decline was observed in 2023 when net sales dropped to 40,109 million, before rising again to 41,950 million in 2024. Despite fluctuations, the levels at the end of 2024 remain above those in 2020.
- MVA Margin
- The MVA margin percentage demonstrated a downward trend from 2020 through 2022, moving from 523.78% to 323.76%. This decline indicates a reduction in market value added relative to net sales during this period. Nevertheless, the margin rebounded in 2023 to 383.09% and further improved in 2024 to 448.99%, indicating better market value generation relative to sales in the latter years.
- Overall Insights
- The data reflects an initial contraction in market value added and its efficiency relative to net sales through 2022, followed by a recovery phase in 2023 and 2024. While net sales peaked in 2021 and showed some volatility afterward, the increase in MVA and MVA margin in the last two years suggest improving market perceptions and value creation efficiency relative to sales. This pattern may highlight a period of adjustment or challenges in the earlier years, with positive momentum regaining in the most recent periods.