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.
MVA
ConocoPhillips, 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 a generally increasing trend from 2021 to 2025, though with some fluctuation. Invested capital demonstrated a more pronounced increase, particularly between 2022 and 2024. Market value added (MVA) showed initial growth followed by a significant decline and subsequent partial recovery.
- Market Value
- The market value increased from US$142,150 million in 2021 to US$146,170 million in 2022, representing a modest gain. Further growth was observed in 2023, reaching US$149,068 million. A slight decrease occurred in 2024 to US$147,392 million, before a more substantial increase to US$155,783 million in 2025. This suggests a generally positive investor sentiment over the period, with a recent acceleration in valuation.
- Invested Capital
- Invested capital experienced a slight decrease from US$76,355 million in 2021 to US$75,520 million in 2022. However, it then increased significantly to US$81,278 million in 2023 and further to US$106,371 million in 2024. A minor reduction was noted in 2025, with invested capital at US$105,245 million. The substantial increase in invested capital between 2022 and 2024 indicates significant capital deployment activities.
- Market Value Added (MVA)
- MVA initially increased from US$65,795 million in 2021 to US$70,650 million in 2022. It then decreased to US$67,790 million in 2023, but experienced a substantial decline in 2024, falling to US$41,021 million. A partial recovery was observed in 2025, with MVA rising to US$50,538 million. The decline in MVA in 2024, despite the continued growth in market value, suggests that the rate of return on invested capital may have been lower than investor expectations during that year. The recovery in 2025 indicates a potential improvement in this regard.
The relationship between invested capital and MVA suggests that while the company has been actively deploying capital, the value created from those investments has fluctuated. The significant increase in invested capital in 2024 did not translate into a corresponding increase in MVA, indicating a potential mismatch between capital allocation and value creation during that period.
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MVA Spread Ratio
ConocoPhillips, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 50,538) | 41,021) | 67,790) | 70,650) | 65,795) | |
| Invested capital2 | 105,245) | 106,371) | 81,278) | 75,520) | 76,355) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 48.02% | 38.56% | 83.41% | 93.55% | 86.17% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 53.80% | 46.44% | 47.11% | 57.71% | 54.49% | |
| Exxon Mobil Corp. | 83.51% | 39.78% | 51.74% | 67.23% | 42.25% | |
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 × 50,538 ÷ 105,245 = 48.02%
4 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, then decreased in 2023, followed by a substantial decline in 2024, and a partial recovery in 2025. Invested capital demonstrated an increasing trend throughout the period, with a significant jump between 2022 and 2023, continuing into 2024 before stabilizing in 2025. The MVA spread ratio mirrored the MVA trend, showing a decline from 2022 to 2024, with a subsequent increase in the final year.
- Market Value Added (MVA)
- MVA began at US$65,795 million in 2021, rising to US$70,650 million in 2022. A decrease to US$67,790 million was observed in 2023. The most significant change occurred in 2024, with MVA falling to US$41,021 million. A partial recovery was noted in 2025, with MVA reaching US$50,538 million. This suggests potential shifts in investor expectations or company performance impacting perceived value creation.
- Invested Capital
- Invested capital remained relatively stable between 2021 and 2022, at US$76,355 million and US$75,520 million respectively. A notable increase occurred in 2023, reaching US$81,278 million, continuing to US$106,371 million in 2024. The rate of increase slowed in 2025, with invested capital at US$105,245 million. This indicates a period of increased investment activity, particularly between 2022 and 2024.
- MVA Spread Ratio
- The MVA spread ratio peaked at 93.55% in 2022, following a value of 86.17% in 2021. A decline was then observed in 2023 to 83.41%, with a substantial decrease to 38.56% in 2024. The ratio partially recovered to 48.02% in 2025. This ratio’s movement suggests a changing relationship between the value created (MVA) and the capital invested, with a significant reduction in value creation relative to invested capital in 2024.
The divergence between the increasing invested capital and the fluctuating, and ultimately declining, MVA and MVA spread ratio warrants further investigation. The substantial drop in the MVA spread ratio in 2024 suggests that the returns generated from invested capital were significantly lower than in previous years, or that investor expectations regarding future returns decreased.
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MVA Margin
ConocoPhillips, MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 50,538) | 41,021) | 67,790) | 70,650) | 65,795) | |
| Sales and other operating revenues | 58,944) | 54,745) | 56,141) | 78,494) | 45,828) | |
| Performance Ratio | ||||||
| MVA margin2 | 85.74% | 74.93% | 120.75% | 90.01% | 143.57% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 79.99% | 50.04% | 50.80% | 51.99% | 67.80% | |
| Exxon Mobil Corp. | 95.85% | 44.44% | 47.49% | 50.09% | 41.64% | |
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 × 50,538 ÷ 58,944 = 85.74%
3 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, reaching a low in 2024 before partially recovering in 2025. Concurrent changes were observed in Sales and other operating revenues, and the resulting MVA margin demonstrated a corresponding pattern of variability.
- Market Value Added (MVA)
- The MVA increased from US$65,795 million in 2021 to US$70,650 million in 2022, representing a growth of approximately 7.4%. A decrease followed, with MVA declining to US$67,790 million in 2023 and further to US$41,021 million in 2024, a substantial reduction. A partial recovery was noted in 2025, with MVA rising to US$50,538 million. This suggests sensitivity to external factors impacting valuation.
- Sales and other operating revenues
- Sales experienced a significant increase between 2021 and 2022, rising from US$45,828 million to US$78,494 million. This represents a growth of approximately 71.3%. Revenues then decreased to US$56,141 million in 2023 and remained relatively stable at US$54,745 million in 2024. A modest increase to US$58,944 million was observed in 2025. The revenue trend appears to influence the MVA, though not in a directly proportional manner.
- MVA Margin
- The MVA margin peaked at 143.57% in 2021, indicating a strong relationship between market value creation and revenue generation. It decreased substantially to 90.01% in 2022, despite the increase in both MVA and sales. The margin rebounded to 120.75% in 2023, before declining sharply to 74.93% in 2024, coinciding with the lowest MVA value. A recovery to 85.74% was seen in 2025. The MVA margin’s volatility suggests that changes in MVA are not always directly proportional to changes in sales, and other factors are influencing market perception of value creation.
The observed fluctuations in MVA and MVA margin warrant further investigation to determine the underlying drivers. The decline in 2024, despite relatively stable sales, suggests potential issues with profitability, investor confidence, or broader market conditions. The partial recovery in 2025 indicates a possible stabilization, but continued monitoring is recommended.
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