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
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
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MVA
Chevron Corp., 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 exhibited volatility over the five-year period. Initial growth from 2021 to 2022 was followed by a decline in 2023, a further slight decrease in 2024, and a substantial increase in 2025. Invested capital demonstrated a consistent upward trend, though at a more moderate pace, throughout the period. Market value added mirrored the fluctuations in market value, peaking in 2022 before declining and then experiencing significant growth in 2025.
- Market Value Trend
- The market value increased from US$299.103 billion in 2021 to US$334.892 billion in 2022, representing a growth of approximately 11.97%. A subsequent decrease was observed in 2023, with the market value falling to US$312.371 billion. This downward trend continued modestly in 2024, reaching US$305.175 billion. However, 2025 saw a significant rebound, with the market value rising sharply to US$421.723 billion, a substantial increase of approximately 38.21% from the prior year.
- Invested Capital Trend
- Invested capital increased steadily from US$193.606 billion in 2021 to US$212.342 billion in 2022, and remained relatively stable at US$212.337 billion in 2023. A slight decrease was noted in 2024, with invested capital reaching US$208.395 billion. The most significant increase occurred in 2025, with invested capital rising to US$274.202 billion.
- Market Value Added (MVA) Trend
- MVA followed a similar pattern to market value. It rose from US$105.497 billion in 2021 to US$122.550 billion in 2022, then decreased to US$100.034 billion in 2023 and US$96.780 billion in 2024. A substantial increase in MVA was observed in 2025, reaching US$147.521 billion. The correlation between MVA and market value is strong, indicating that changes in market perception directly impact the value created above the cost of capital.
The substantial increase in both market value and MVA in 2025, coupled with the continued growth in invested capital, suggests a positive shift in investor sentiment and potentially improved operational performance or market conditions during that year. The fluctuations observed in the earlier years warrant further investigation to understand the underlying drivers of these changes.
MVA Spread Ratio
Chevron Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
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 subsequently declined in 2023 and 2024 before experiencing a substantial rise in 2025. Invested capital demonstrated a generally increasing trend, with a slight decrease observed between 2023 and 2024. The MVA spread ratio mirrored the MVA trend, showing initial gains followed by declines and a final increase.
- Market Value Added (MVA)
- The MVA increased from US$105,497 million in 2021 to US$122,550 million in 2022, representing a growth of approximately 16.1%. A subsequent decrease was observed in 2023, with MVA falling to US$100,034 million. This downward trend continued into 2024, reaching US$96,780 million. However, 2025 saw a significant recovery, with MVA increasing substantially to US$147,521 million. This suggests a period of value creation followed by challenges, and then a strong resurgence in shareholder value.
- Invested Capital
- Invested capital consistently increased from US$193,606 million in 2021 to US$212,342 million in 2022, and remained relatively stable at US$212,337 million in 2023. A minor decrease was noted in 2024, with invested capital reaching US$208,395 million. The most significant increase occurred in 2025, rising to US$274,202 million. This indicates a long-term commitment to capital deployment, with a notable acceleration in investment during the final year of the observed period.
- MVA Spread Ratio
- The MVA spread ratio began at 54.49% in 2021 and increased to 57.71% in 2022, indicating a growing proportion of market value generated relative to invested capital. The ratio then decreased to 47.11% in 2023 and further to 46.44% in 2024, suggesting diminishing returns on invested capital during those years. The ratio rebounded in 2025, reaching 53.80%, aligning with the increase in MVA and indicating improved efficiency in value creation relative to capital employed.
The correlation between MVA and the MVA spread ratio is evident, with both metrics exhibiting similar patterns of increase, decrease, and subsequent recovery. The increase in invested capital in 2025 appears to have coincided with a substantial increase in MVA, resulting in an improved MVA spread ratio.
MVA Margin
Chevron Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Sales and other operating revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
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 ÷ Sales and other operating 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 decrease in both 2022 and 2023. A slight decrease continued into 2024, before a substantial increase occurred in 2025. Concurrently, Sales and other operating revenues increased significantly from 2021 to 2022, then decreased over the subsequent three years.
- MVA Trend
- MVA began at US$105,497 million in 2021, rising to US$122,550 million in 2022, representing a growth of approximately 16.2%. A subsequent decline saw MVA fall to US$100,034 million in 2023 and further to US$96,780 million in 2024. The most significant change occurred in 2025, with MVA increasing substantially to US$147,521 million.
- Sales and Revenue Trend
- Sales and other operating revenues demonstrated a considerable increase from US$155,606 million in 2021 to US$235,717 million in 2022, a rise of over 51%. However, revenues then decreased to US$196,913 million in 2023, US$193,414 million in 2024, and continued to decline to US$184,432 million in 2025.
- MVA Margin
- The MVA margin initially stood at 67.80% in 2021. It decreased to 51.99% in 2022, and continued a downward trend to 50.80% in 2023 and 50.04% in 2024. A substantial increase was observed in 2025, with the MVA margin reaching 79.99%. This suggests a strengthening relationship between market value added and sales revenue in the final year of the observed period.
The decline in sales revenue from 2022 to 2025 appears to have initially suppressed MVA growth, as evidenced by the decreasing MVA margin. However, the significant increase in MVA in 2025, coupled with the high MVA margin, indicates that the company was able to generate substantial value for its investors despite the lower revenue levels. This could be attributable to improved operational efficiency, cost management, or other factors impacting profitability not reflected in revenue alone.