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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MVA
Abbott Laboratories, 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 fluctuations in market value and associated market value added. The market value of the company experienced an initial decline, followed by recovery and then a subsequent decrease. Invested capital remained relatively stable throughout the period, with a slight increase observed in the final year. Consequently, market value added mirrored the trends in market value, exhibiting periods of decline and growth.
- Market Value
- The market value decreased from US$227,680 million in 2021 to US$202,618 million in 2022, representing a decline of approximately 10.9%. A recovery was then observed in 2023, with the market value increasing to US$213,306 million. Further growth occurred in 2024, reaching US$248,418 million, the highest value recorded during the period. However, the market value decreased again in 2025, falling to US$208,846 million.
- Invested Capital
- Invested capital showed minimal variation between 2021 and 2023, fluctuating between US$59,651 million and US$62,076 million. A slight increase was noted in 2024 to US$60,086 million, followed by a further increase to US$62,400 million in 2025. This suggests a modest expansion in the company’s capital base towards the end of the period.
- Market Value Added (MVA)
- MVA followed a similar pattern to market value. It decreased from US$165,604 million in 2021 to US$141,330 million in 2022. An increase was then observed in 2023, reaching US$153,655 million, and a significant increase in 2024 to US$188,332 million. Finally, MVA decreased in 2025 to US$146,446 million. The fluctuations in MVA indicate changes in the value created for investors beyond the capital invested.
The largest increase in both market value and MVA occurred between 2023 and 2024, while the most substantial decline occurred between 2021 and 2022, and again between 2024 and 2025. The relative stability of invested capital suggests that these changes in market value and MVA are primarily driven by market perceptions and performance rather than significant shifts in the company’s capital structure.
MVA Spread Ratio
Abbott Laboratories, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group 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 fluctuations over the five-year period. Initially, a decrease in MVA was observed from 2021 to 2022, followed by increases in both 2023 and 2024. A subsequent decline in MVA occurred in 2025, returning to a level closer to that of 2022.
Invested capital demonstrated relative stability throughout the period, with a slight decreasing trend from 2021 to 2023, followed by stabilization and a modest increase in 2025.
- MVA Spread Ratio
- The MVA spread ratio, representing MVA as a percentage of invested capital, displayed significant variability. The ratio decreased from 266.78% in 2021 to 230.60% in 2022, mirroring the decline in MVA. A recovery was then noted in 2023, reaching 257.59%, and a substantial increase occurred in 2024, peaking at 313.44%. The ratio then decreased considerably in 2025, falling to 234.69%.
- The substantial increase in the MVA spread ratio in 2024 suggests that the company generated a significantly higher return on its invested capital compared to previous years, even as MVA increased. The subsequent decrease in 2025, despite a slight increase in invested capital, indicates a reduced return on invested capital relative to the prior year.
- Overall, the MVA spread ratio’s movements suggest a dynamic relationship between market valuation and capital employed, with 2024 representing a period of particularly efficient capital allocation and value creation, followed by a less favorable outcome in 2025.
The interplay between MVA and invested capital suggests that changes in market perception and operational performance significantly influenced the company’s value creation over the observed period. The fluctuations in the MVA spread ratio highlight the sensitivity of the company’s valuation to its ability to generate returns on invested capital.
MVA Margin
Abbott Laboratories, 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 sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group 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 sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The period under review demonstrates fluctuating performance in market value added and its associated margin. Market value added experienced an initial decline, followed by recovery and subsequent decrease again. Net sales exhibited a more stable, albeit modest, growth pattern over the five-year period.
- Market Value Added (MVA)
- Market value added began at US$165,604 million in 2021, decreasing to US$141,330 million in 2022. A recovery was observed in 2023, with MVA reaching US$153,655 million. This upward trend continued into 2024, reaching a peak of US$188,332 million, before declining to US$146,446 million in 2025. The largest year-over-year change occurred between 2023 and 2024, representing a substantial increase. The decrease from 2024 to 2025 was also significant.
- Net Sales
- Net sales showed a slight increase from US$43,075 million in 2021 to US$43,653 million in 2022. A decrease was noted in 2023, with net sales falling to US$40,109 million. Sales recovered somewhat in 2024, reaching US$41,950 million, and continued to rise in 2025 to US$44,328 million. The growth in net sales appears to be relatively consistent, though not substantial enough to consistently correlate with the fluctuations in MVA.
- MVA Margin
- The MVA margin began at a high of 384.46% in 2021, decreasing to 323.76% in 2022, mirroring the decline in MVA. The margin recovered to 383.09% in 2023, then increased significantly to 448.94% in 2024, coinciding with the peak in MVA. Finally, the MVA margin decreased to 330.37% in 2025. The MVA margin demonstrates a strong correlation with the absolute MVA value, amplifying the percentage changes observed in MVA.
The observed volatility in MVA and MVA margin suggests sensitivity to market conditions or internal factors not reflected in net sales alone. Further investigation would be required to determine the drivers behind these fluctuations.