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
Danaher 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 »
An examination of the financial information reveals fluctuations in market valuation and invested capital over the five-year period. Market value added (MVA) demonstrates a corresponding pattern of change. Overall, a decline in market value and stabilization of invested capital is observed.
- Market Value
- The market value of the company decreased from US$214,523 million in 2021 to US$201,299 million in 2022, representing a decline of approximately 6.17%. A slight recovery occurred in 2023, reaching US$202,392 million, but this was followed by a more substantial decrease to US$163,165 million in 2024. The market value experienced limited growth in 2025, settling at US$165,090 million. This indicates a general downward trend in market perception of the company’s value, with a particularly pronounced drop in 2024.
- Invested Capital
- Invested capital exhibited a modest increase from US$74,633 million in 2021 to US$78,342 million in 2022, a growth of approximately 4.96%. This trend continued with a further increase to US$78,561 million in 2023. However, invested capital then decreased to US$73,131 million in 2024, and experienced a slight increase to US$75,443 million in 2025. The fluctuations are less dramatic than those observed in market value, suggesting relative stability in the capital employed by the company.
- Market Value Added (MVA)
- MVA followed the trend of market value, decreasing from US$139,890 million in 2021 to US$122,957 million in 2022, a reduction of approximately 13.73%. MVA remained relatively stable between 2022 and 2023, at US$123,831 million. A significant decline was then observed in 2024, with MVA falling to US$90,034 million. The value remained relatively consistent in 2025, at US$89,647 million. The decreasing MVA suggests that the company is generating less wealth for its investors relative to the capital invested.
The divergence between the relatively stable invested capital and the declining market value and MVA suggests that the market is reassessing the company’s future growth prospects or risk profile. The substantial drop in 2024 warrants further investigation to determine the underlying causes.
MVA Spread Ratio
Danaher Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| 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 a declining trend over the five-year period. Initially at US$139,890 million in 2021, it decreased to US$89,647 million by 2025. While there was a slight increase from 2022 to 2023, the overall trajectory points to a substantial reduction in the value created for shareholders beyond the cost of capital.
- MVA Trend
- The MVA decreased from US$139,890 million in 2021 to US$122,957 million in 2022, representing a decline of approximately 11.7%. A modest recovery occurred in 2023, with MVA reaching US$123,831 million. However, subsequent years witnessed further declines, falling to US$90,034 million in 2024 and US$89,647 million in 2025. This suggests potential challenges in generating shareholder value in the later part of the period.
- Invested Capital
- Invested capital showed an initial increase from US$74,633 million in 2021 to US$78,342 million in 2022, and a further slight increase to US$78,561 million in 2023. A decrease was then observed in 2024, with invested capital falling to US$73,131 million, followed by a modest increase to US$75,443 million in 2025. The fluctuations in invested capital appear relatively contained compared to the more significant changes in MVA.
- MVA Spread Ratio
- The MVA spread ratio, which indicates the MVA as a percentage of invested capital, mirrored the downward trend in MVA. Starting at 187.44% in 2021, it decreased consistently to 118.83% in 2025. The ratio experienced a decrease from 187.44% to 156.95% between 2021 and 2022. A slight increase to 157.62% occurred in 2023, but the ratio continued to decline in subsequent years, reaching 123.11% in 2024 and 118.83% in 2025. This indicates a diminishing return on invested capital over time.
The consistent decline in the MVA spread ratio suggests that the company is generating less value relative to the capital invested. While invested capital remained relatively stable, the decreasing MVA indicates that the returns generated from that capital are diminishing. Further investigation into the underlying drivers of MVA, such as profitability, growth, and cost of capital, would be necessary to fully understand these trends.
MVA Margin
Danaher Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Sales | ||||||
| Add: Increase (decrease) in contract liabilities | ||||||
| Adjusted sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| 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 ÷ Adjusted sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited volatility over the five-year period. Initially, a decrease in MVA was observed from 2021 to 2022, followed by a slight recovery in 2023. Subsequent years, 2024 and 2025, demonstrated a continued decline in MVA, albeit at a slower rate than the initial drop.
- Market Value Added (MVA)
- The MVA began at US$139,890 million in 2021, decreasing to US$122,957 million in 2022. A modest increase to US$123,831 million occurred in 2023 before declining to US$90,034 million in 2024 and further to US$89,647 million in 2025. This suggests a weakening of the market’s assessment of the company’s value creation over time.
- Adjusted Sales
- Adjusted sales showed an initial increase from US$29,862 million in 2021 to US$31,528 million in 2022. However, a substantial decrease was noted in 2023, falling to US$23,927 million, and remained relatively stable through 2024 at US$23,692 million, with a slight increase to US$24,621 million in 2025. The decline in sales may be a contributing factor to the observed MVA trend.
- MVA Margin
- The MVA margin initially decreased from 468.46% in 2021 to 389.99% in 2022. A significant increase to 517.54% was observed in 2023, coinciding with the slight recovery in MVA. The margin then decreased to 380.02% in 2024 and 364.11% in 2025, mirroring the declining MVA trend. The MVA margin demonstrates the relationship between value created and sales, and its decline suggests diminishing returns on sales.
The correlation between the decrease in adjusted sales and the decline in MVA, coupled with the corresponding movement in the MVA margin, indicates a potential link between revenue generation and the market’s perception of the company’s value. The fluctuations suggest external factors or internal strategic shifts may be influencing performance.