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
Eli Lilly & 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 information presents a significant and consistent increase in market value added (MVA) alongside growth in both market value and invested capital over a five-year period. A clear upward trajectory is evident across all three metrics, indicating increasing shareholder wealth creation.
- Market Value
- The market value demonstrates substantial growth, increasing from US$243,990 million in 2021 to US$1,019,848 million in 2025. This represents a cumulative increase of over 418%. The rate of growth appears to be accelerating, with larger absolute increases observed in later years. The increase from 2022 to 2023 is particularly notable.
- Invested Capital
- Invested capital also exhibits growth, albeit at a more moderate pace than market value. It rises from US$26,117 million in 2021 to US$49,610 million in 2025, a cumulative increase of approximately 90%. While there is a slight decrease in invested capital between 2021 and 2022, the trend is generally upward, suggesting continued investment in the business.
- Market Value Added (MVA)
- MVA shows the most dramatic increase, growing from US$217,872 million in 2021 to US$970,238 million in 2025. This represents a cumulative increase of over 345%. The growth in MVA consistently outpaces the growth in invested capital, indicating efficient capital allocation and strong value creation. The difference between market value and invested capital, which constitutes MVA, widens considerably over the period.
The consistent and substantial growth in MVA suggests that the company is generating returns on its invested capital that exceed its cost of capital. The accelerating growth in market value, coupled with the increasing MVA, points to positive market perception and investor confidence. The observed trends indicate a successful strategy of value creation for shareholders.
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MVA Spread Ratio
Eli Lilly & Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 970,238) | 816,755) | 702,361) | 301,315) | 217,872) | |
| Invested capital2 | 49,610) | 35,786) | 29,370) | 24,287) | 26,117) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 1,955.73% | 2,282.35% | 2,391.43% | 1,240.67% | 834.21% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 654.49% | 483.23% | 438.96% | 297.39% | 253.64% | |
| Amgen Inc. | 331.01% | 238.60% | 213.63% | 308.27% | 303.88% | |
| Bristol-Myers Squibb Co. | 177.36% | 155.28% | 100.64% | 160.91% | 138.81% | |
| Danaher Corp. | 118.83% | 123.11% | 157.62% | 156.95% | 187.44% | |
| Gilead Sciences Inc. | 376.28% | 276.96% | 148.05% | 175.26% | 119.58% | |
| Johnson & Johnson | 354.34% | 288.70% | 309.06% | 288.40% | 366.82% | |
| Merck & Co. Inc. | 259.08% | 231.53% | 412.35% | 312.72% | 223.02% | |
| Pfizer Inc. | 46.81% | 40.86% | 40.45% | 124.43% | 210.66% | |
| Regeneron Pharmaceuticals Inc. | 420.92% | 416.61% | 663.41% | 521.52% | 461.61% | |
| Thermo Fisher Scientific Inc. | 145.65% | 182.22% | 189.54% | 195.34% | 212.01% | |
| Vertex Pharmaceuticals Inc. | 1,030.46% | 1,158.91% | 712.26% | 484.09% | 564.91% | |
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 × 970,238 ÷ 49,610 = 1,955.73%
4 Click competitor name to see calculations.
The Market Value Added (MVA) and associated MVA spread ratio demonstrate substantial growth over the observed period. MVA increased significantly from 2021 to 2023, with a more moderate increase in subsequent years. Invested capital also increased throughout the period, though at a slower pace than MVA. Consequently, the MVA spread ratio, which reflects MVA as a percentage of invested capital, exhibits a dynamic pattern.
- Market Value Added (MVA)
- MVA experienced a considerable rise from US$217,872 million in 2021 to US$702,361 million in 2023. Growth continued, reaching US$970,238 million by 2025, but at a diminishing rate compared to the 2021-2023 period. This suggests a potential slowing of value creation relative to earlier gains.
- Invested Capital
- Invested capital showed a fluctuating pattern. It decreased slightly from US$26,117 million in 2021 to US$24,287 million in 2022, before increasing to US$29,370 million in 2023. This upward trend continued, reaching US$49,610 million in 2025. The consistent increase in invested capital indicates ongoing investment in the business.
- MVA Spread Ratio
- The MVA spread ratio increased dramatically from 834.21% in 2021 to 1,240.67% in 2022, and then to a peak of 2,391.43% in 2023. Following this peak, the ratio decreased to 2,282.35% in 2024 and further to 1,955.73% in 2025. While remaining exceptionally high, the declining trend in the ratio from 2023 onwards suggests that the rate of MVA growth is decelerating relative to the growth in invested capital. This could indicate diminishing returns on invested capital or a shift in investment strategy.
In summary, the period demonstrates strong value creation as evidenced by MVA growth. However, the decreasing MVA spread ratio in the later years warrants further investigation to understand the underlying drivers and potential implications for future performance.
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MVA Margin
Eli Lilly & Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 970,238) | 816,755) | 702,361) | 301,315) | 217,872) | |
| Revenue | 65,179) | 45,043) | 34,124) | 28,541) | 28,318) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,488.57% | 1,813.29% | 2,058.25% | 1,055.71% | 769.37% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | 656.59% | 594.14% | 551.18% | 420.74% | 432.93% | |
| Amgen Inc. | 552.04% | 470.63% | 555.51% | 493.74% | 503.37% | |
| Bristol-Myers Squibb Co. | 218.12% | 201.43% | 151.08% | 250.01% | 240.26% | |
| Danaher Corp. | 364.11% | 380.02% | 517.54% | 389.99% | 468.46% | |
| Gilead Sciences Inc. | 557.12% | 429.17% | 251.89% | 295.97% | 211.56% | |
| Johnson & Johnson | 519.72% | 346.20% | 359.73% | 345.74% | 383.60% | |
| Merck & Co. Inc. | 390.39% | 286.58% | 479.92% | 390.05% | 323.90% | |
| Pfizer Inc. | 104.53% | 86.91% | 105.20% | 136.21% | 224.83% | |
| Regeneron Pharmaceuticals Inc. | 388.74% | 365.32% | 605.08% | 525.04% | 312.14% | |
| Thermo Fisher Scientific Inc. | 307.78% | 348.77% | 378.46% | 360.17% | 431.35% | |
| Vertex Pharmaceuticals Inc. | 908.79% | 951.31% | 955.82% | 714.32% | 700.10% | |
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 ÷ Revenue
= 100 × 970,238 ÷ 65,179 = 1,488.57%
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a consistent upward trajectory between 2021 and 2025. Simultaneously, revenue also increased over the same period, though with varying rates of growth. The MVA margin, calculated as MVA relative to revenue, demonstrates significant fluctuations alongside these increases.
- Market Value Added (MVA)
- MVA increased substantially from US$217,872 million in 2021 to US$970,238 million in 2025. The most significant increase occurred between 2022 and 2023, adding US$401,046 million. Growth slowed between 2023 and 2024, and again between 2024 and 2025, though still remaining positive.
- Revenue
- Revenue experienced moderate growth from US$28,318 million in 2021 to US$28,541 million in 2022. A more pronounced increase was observed between 2022 and 2023, reaching US$34,124 million. Revenue growth accelerated further between 2023 and 2024, reaching US$45,043 million, and continued to rise significantly to US$65,179 million in 2025.
- MVA Margin
- The MVA margin rose dramatically from 769.37% in 2021 to 1,055.71% in 2022, indicating a substantial increase in value creation relative to revenue. This upward trend continued to 2,058.25% in 2023. However, the margin decreased to 1,813.29% in 2024 and further to 1,488.57% in 2025. While the margin remains exceptionally high in absolute terms, the decline in 2024 and 2025 suggests that revenue growth is outpacing the increase in MVA, or that market expectations are adjusting.
The period between 2021 and 2023 was characterized by rapidly increasing MVA margins. The subsequent two years show a deceleration in this margin growth, despite continued increases in both MVA and revenue. This suggests a potential shift in the relationship between value creation and revenue generation.
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