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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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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MVA
Linde plc, MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value
- The market value of the company increased consistently over the five-year period. Starting at approximately $151.7 billion in 2020, it rose modestly to $165.7 billion in 2021, followed by a larger increase to approximately $189.8 billion in 2022. The upward trajectory continued more sharply in 2023, reaching about $237.7 billion, and a slight further increase to $241.1 billion in 2024. This trend indicates strong market confidence and growing valuation over time.
- Invested capital
- The invested capital remained relatively stable throughout the period, showing minor fluctuations. Beginning at about $78.8 billion in 2020, it declined to roughly $72.6 billion in 2021 and stayed nearly flat at $72.3 billion in 2022. A slight growth was observed in 2023 and 2024, climbing back to around $73.4 billion and $74.9 billion respectively. This stability suggests controlled and consistent investment levels, with no major expansions or contractions in capital employed.
- Market value added (MVA)
- The market value added, representing the difference between market value and invested capital, exhibited a strong increasing trend. It increased from approximately $72.9 billion in 2020 to $93.1 billion in 2021, then advanced significantly to $117.5 billion in 2022. The growth rate accelerated further in 2023, reaching $164.2 billion, with a slight rise to $166.2 billion in 2024. The increasing MVA reflects enhanced shareholder value creation and improved market perception of the company’s future earning potential relative to the capital invested.
- Overall insights
- Throughout the analyzed period, the company demonstrated a consistent rise in market value coupled with relatively stable invested capital, leading to a substantial increase in market value added. This pattern highlights the firm's effective value creation and capital efficiency. The noticeable acceleration in market value and MVA especially after 2021 indicates stronger growth prospects and potentially improved operational performance or market conditions during the later years.
MVA Spread Ratio
Linde plc, MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Sherwin-Williams Co. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrates a continuous upward trend over the five-year period. Starting from approximately US$72.9 billion in 2020, it increased steadily each year, reaching about US$166.2 billion by 2024. This indicates a significant growth in the company's market valuation, more than doubling over the analyzed timeframe.
- Invested Capital
- The invested capital shows a more stable pattern with minor fluctuations. It decreased from around US$78.8 billion in 2020 to approximately US$72.3 billion in 2022, followed by modest increases in the subsequent years, ending at about US$74.9 billion in 2024. Overall, the invested capital remains relatively flat compared to the substantial growth observed in MVA.
- MVA Spread Ratio
- This ratio, which measures the value created over invested capital, exhibits a robust upward trend. From 92.56% in 2020, it rises sharply to 223.74% in 2023 and remains at a similar high level of 221.98% in 2024. This indicates that the company has been increasingly successful in generating market value in excess of its invested capital during this period.
- Summary Insights
- The data reveals that the company has markedly enhanced its market value relative to the capital invested. While invested capital has remained relatively stable with slight variability, the market value added and MVA spread ratio have grown substantially. This suggests improvements in operational efficiency, profitability, or market perception, resulting in significantly greater value generation over the capital employed.
MVA Margin
Linde plc, MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Sherwin-Williams Co. | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals notable trends in key performance indicators over the five-year period ending December 31, 2024.
- Market Value Added (MVA)
- The Market Value Added exhibited a consistent upward trajectory, increasing from 72,913 million US dollars in 2020 to 166,227 million US dollars in 2024. This growth reflects a more than twofold increase over the period, indicating a substantial enhancement of shareholder value.
- Sales
- Sales showed a gradual but modest increase, rising from 27,243 million US dollars in 2020 to 33,005 million US dollars in 2024. Despite this increase, sales growth appears relatively flat between 2022 and 2024, suggesting a stabilization in revenue generation during the final years.
- MVA Margin
- The MVA margin, expressed as a percentage, demonstrated a strong upward trend, expanding from 267.64% in 2020 to 503.64% in 2024. This substantial increase points to significantly improved value creation relative to sales, indicating enhanced operational efficiency or market perception of the company's value beyond its sales growth.
Overall, while sales growth was moderate, the marked rise in Market Value Added and the corresponding MVA margin suggests that the company succeeded in generating higher market value and returns relative to its sales base. This may reflect successful strategic initiatives, cost management, or improved investor confidence resulting in increased market valuation over the analyzed period.