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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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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MVA
Elevance Health Inc., 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 fluctuated over the five-year period, initially increasing before experiencing a significant decline. Invested capital consistently rose throughout the period. Market value added (MVA) mirrored the pattern of the market value, peaking in 2023 before decreasing substantially in subsequent years.
- Market Value Trend
- The market value exhibited an initial increase from US$138,134 million in 2021 to US$139,281 million in 2022, followed by a further rise to US$143,259 million in 2023. However, a marked decline was observed in 2024, with the market value falling to US$118,528 million, and this downward trend continued into 2025, reaching US$105,975 million.
- Invested Capital Trend
- Invested capital demonstrated a consistent upward trajectory throughout the observed period. It increased from US$63,876 million in 2021 to US$66,804 million in 2022, US$69,669 million in 2023, US$78,241 million in 2024, and finally to US$80,815 million in 2025. This indicates a continuous reinvestment in the business.
- Market Value Added (MVA) Trend
- MVA initially decreased slightly from US$74,258 million in 2021 to US$72,477 million in 2022, before recovering to US$73,590 million in 2023. A substantial decrease in MVA was then observed, falling to US$40,287 million in 2024 and further declining to US$25,160 million in 2025. This decline in MVA coincides with the decrease in market value, suggesting that the market is valuing the company’s future earnings potential lower relative to its invested capital.
The divergence between the increasing invested capital and the declining MVA from 2023 onwards suggests a potential issue with the returns generated from the invested capital. Further investigation into the factors driving the decline in market value and MVA would be warranted.
MVA Spread Ratio
Elevance Health Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| 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 initial stability followed by a significant decline over the observed period. While MVA began at US$74,258 million in 2021, it decreased to US$25,160 million by 2025. Invested capital consistently increased throughout the period, rising from US$63,876 million in 2021 to US$80,815 million in 2025. Consequently, the MVA spread ratio, which reflects MVA as a percentage of invested capital, demonstrated a marked downward trend.
- MVA Trend
- MVA experienced a slight decrease from US$74,258 million in 2021 to US$72,477 million in 2022. A modest recovery was noted in 2023, with MVA reaching US$73,590 million. However, a substantial decline commenced in 2024, falling to US$40,287 million, and continued into 2025, reaching US$25,160 million. This represents a cumulative decrease of approximately 66% from the 2021 level.
- Invested Capital Trend
- Invested capital showed consistent growth throughout the period. An increase of approximately 4.6% was observed from 2021 to 2022, followed by increases of 4.2% and 12.5% in 2023 and 2024 respectively. The growth continued, albeit at a slower pace, with a 3.8% increase from 2024 to 2025. This consistent expansion suggests ongoing investment in the business.
- MVA Spread Ratio Trend
- The MVA spread ratio mirrored the decline in MVA, exhibiting a consistent downward trajectory. Starting at 116.25% in 2021, the ratio decreased to 108.49% in 2022 and 105.63% in 2023. A significant drop was observed in 2024, with the ratio falling to 51.49%, and this decline continued in 2025, reaching 31.13%. This indicates that the value created for investors, relative to the capital invested, has diminished considerably over the period.
The divergence between increasing invested capital and decreasing MVA suggests that the returns generated from those investments have not kept pace with the capital deployed. The substantial decline in the MVA spread ratio highlights a growing gap between the market’s valuation of the company’s future prospects and the capital employed to achieve those prospects.
MVA Margin
Elevance Health Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Operating revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| 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 ÷ Operating revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited initial stability followed by a significant decline over the observed period. While MVA began at US$74.258 billion in 2021, it decreased to US$25.160 billion by 2025. This represents a cumulative reduction of approximately 66.3%. Concurrently, Operating Revenue demonstrated consistent growth throughout the period, increasing from US$136.943 billion in 2021 to US$197.584 billion in 2025.
- MVA Trend
- The MVA experienced a slight decrease from 2021 to 2022, followed by a modest increase in 2023. However, a substantial downturn occurred between 2023 and 2024, with the decline accelerating further into 2025. This suggests a weakening of investor confidence or a reassessment of the company’s future prospects relative to its cost of capital.
- Operating Revenue Trend
- Operating Revenue consistently increased year-over-year. The growth rate appeared relatively stable between 2022 and 2024, but accelerated between 2024 and 2025. This indicates successful expansion of the company’s core business activities.
- MVA Margin Trend
- The MVA margin mirrored the trend in MVA, declining steadily from 54.23% in 2021 to 12.73% in 2025. This indicates that the value created for shareholders, relative to operating revenue, is diminishing. The most significant decrease in MVA margin occurred between 2023 and 2025, coinciding with the most rapid decline in MVA. Despite increasing operating revenue, the company is generating less market value per dollar of revenue.
The divergence between growing Operating Revenue and decreasing MVA and MVA margin is noteworthy. This suggests that while the company is expanding its top line, it is not translating into equivalent value creation for investors. Factors contributing to this could include increased costs, changing market conditions, or a shift in investor expectations regarding future profitability.