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.
Paying user area
Try for free
Bristol-Myers Squibb Co. pages available for free this week:
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Bristol-Myers Squibb Co. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Bristol-Myers Squibb Co., MVA calculation
US$ 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 fluctuating performance in market value and invested capital, resulting in corresponding changes in market value added. Initial values show a decline in both market value and invested capital from 2021 to 2022, followed by a significant decrease in market value in 2023. Subsequent years exhibit recovery in both market value and MVA, though invested capital continues a downward trajectory.
- Market Value
- The market value experienced a decrease from US$191,727 million in 2021 to US$187,124 million in 2022, representing a contraction of approximately 2.4%. A more substantial decline occurred in 2023, falling to US$135,555 million. However, the market value began to recover in 2024, reaching US$159,946 million, and continued this upward trend in 2025, closing at US$164,394 million. This indicates a period of volatility followed by stabilization and modest growth.
- Invested Capital
- Invested capital consistently decreased throughout the observed period. From US$80,284 million in 2021, it declined to US$71,720 million in 2022, US$67,562 million in 2023, US$62,654 million in 2024, and finally reached US$59,271 million in 2025. This consistent reduction suggests a potential shift in capital allocation strategies or a decrease in capital-intensive projects.
- Market Value Added (MVA)
- MVA initially increased from US$111,443 million in 2021 to US$115,404 million in 2022, despite the decrease in market value. However, MVA experienced a significant drop in 2023, reaching US$67,993 million, mirroring the substantial decline in market value. A recovery was observed in 2024, with MVA increasing to US$97,292 million, and this positive trend continued into 2025, reaching US$105,123 million. The MVA trend closely follows the fluctuations in market value, indicating a strong correlation between the two metrics.
The divergence between the declining invested capital and the fluctuating MVA suggests that the company is generating increased value with a decreasing capital base, particularly in the later years of the period. Further investigation would be required to understand the drivers behind this trend, such as improved operational efficiency, strategic divestitures, or changes in the cost of capital.
MVA Spread Ratio
Bristol-Myers Squibb Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| 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) exhibited fluctuations over the five-year period. Initially increasing from 2021 to 2022, it then experienced a substantial decline in 2023 before recovering and continuing to grow through 2025. Simultaneously, Invested Capital demonstrated a consistent downward trend throughout the observed timeframe. The MVA spread ratio, calculated from these figures, reveals a dynamic relationship between wealth creation and capital employed.
- Market Value Added (MVA)
- MVA began at US$111,443 million in 2021 and rose to US$115,404 million in 2022, indicating positive value creation. A significant decrease was then observed in 2023, with MVA falling to US$67,993 million. Subsequent years showed recovery, reaching US$97,292 million in 2024 and further increasing to US$105,123 million in 2025. This suggests periods of strong performance followed by challenges, and then a return to growth.
- Invested Capital
- Invested Capital decreased steadily from US$80,284 million in 2021 to US$59,271 million in 2025. This consistent decline may be attributable to asset sales, reduced investment in projects, or efficient capital management. The continuous reduction in capital employed occurred concurrently with the fluctuations in MVA.
- MVA Spread Ratio
- The MVA spread ratio, representing MVA as a percentage of Invested Capital, showed considerable volatility. It increased from 138.81% in 2021 to 160.91% in 2022, reflecting enhanced value creation relative to capital invested. The ratio then decreased to 100.64% in 2023, coinciding with the drop in MVA. A substantial increase followed, reaching 155.28% in 2024 and peaking at 177.36% in 2025. This indicates that, despite the initial decline in MVA, the company became increasingly efficient in generating value from its invested capital in the later years of the period.
The increasing MVA spread ratio, despite the decreasing invested capital, suggests improved capital efficiency and a stronger ability to generate returns on a smaller capital base. The initial decline in MVA in 2023 warrants further investigation to understand the underlying causes, but the subsequent recovery and rising spread ratio indicate a positive trend in value creation relative to capital employed.
MVA Margin
Bristol-Myers Squibb Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| 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 ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the five-year period. Initially, MVA increased from 2021 to 2022, followed by a substantial decline in 2023, and then recovered through 2025, though not to the levels seen in the earlier years. Revenues demonstrated relative stability, with a slight decrease in 2023 and subsequent increases in 2024 and 2025.
- MVA Trend
- MVA began at US$111,443 million in 2021 and rose to US$115,404 million in 2022, representing a growth of approximately 3.5%. A significant decrease was then observed in 2023, with MVA falling to US$67,993 million. This represents a decline of roughly 41% from the prior year. A recovery commenced in 2024, with MVA reaching US$97,292 million, and continued into 2025, reaching US$105,123 million. While the recovery is evident, the 2025 MVA remains below the 2021 and 2022 figures.
- Revenue Trend
- Revenues were relatively consistent throughout the period. They decreased slightly from US$46,385 million in 2021 to US$46,159 million in 2022, a decrease of less than 1%. A more noticeable decline occurred in 2023, with revenues falling to US$45,006 million. Revenues then increased in both 2024 and 2025, reaching US$48,300 million and US$48,194 million respectively. The revenue in 2025 is slightly lower than in 2024, but still represents an increase compared to 2023.
- MVA Margin Trend
- The MVA margin mirrored the fluctuations in MVA, exhibiting a peak in 2022 at 250.01%. The margin decreased substantially in 2023 to 151.08%, coinciding with the decline in MVA. The margin then increased in 2024 to 201.43% and continued to rise in 2025, reaching 218.12%. While the margin has recovered, it has not returned to the high levels observed in 2022. The MVA margin demonstrates a strong correlation with the absolute MVA value.
The observed decline in MVA and MVA margin in 2023 warrants further investigation to determine the underlying causes. The subsequent recovery suggests mitigating factors were in place, but the values have not fully rebounded to previous levels. The relative stability of revenues throughout the period suggests that changes in MVA are likely driven by factors other than top-line performance.