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
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Analysis of Revenues
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MVA
Lowe’s Cos. Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29).
1 Fair value of debt. See details »
2 Invested capital. See details »
The period under review demonstrates fluctuations in market value, invested capital, and the resulting market value added. Overall, MVA remains substantially positive throughout the observed timeframe, indicating the company is generating value for its investors. However, there are notable shifts in these figures year-over-year.
- Market Value
- The market value of the company initially increased from US$159,195 million in 2021 to US$180,854 million in 2022, representing a significant gain. A subsequent decline was observed in 2023, falling to US$148,428 million. The market value recovered in 2024 to US$182,268 million, before decreasing again to US$165,925 million in 2025. A slight increase is then noted in 2026, reaching US$172,560 million. This suggests a degree of volatility in investor perception and market conditions.
- Invested Capital
- Invested capital generally decreased from US$28,534 million in 2021 to US$24,710 million in 2023. A modest increase occurred in 2024, reaching US$25,913 million, followed by a further increase to US$26,276 million in 2025. A more substantial increase is observed in 2026, with invested capital rising to US$36,866 million. This suggests a potential shift in capital allocation strategies or investment in growth initiatives towards the end of the period.
- Market Value Added (MVA)
- MVA mirrored the trends in market value, peaking at US$154,558 million in 2022. It then decreased to US$123,718 million in 2023, before recovering to US$156,355 million in 2024. A decline to US$139,649 million is seen in 2025, followed by a further decrease to US$135,694 million in 2026. While consistently positive, the fluctuations in MVA indicate that the rate of value creation is not constant and is sensitive to changes in market value and invested capital. The decrease in MVA in 2025 and 2026, despite the increase in invested capital, warrants further investigation to determine the underlying causes.
The relationship between invested capital and MVA suggests that increases in invested capital do not always translate directly into proportional increases in MVA. This could be due to factors such as the efficiency of capital allocation, the time lag between investment and returns, or broader economic conditions. The observed trends highlight the importance of monitoring both market value and invested capital to assess the company’s value creation performance.
MVA Spread Ratio
Lowe’s Cos. Inc., MVA spread ratio calculation, comparison to benchmarks
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| TJX Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29).
1 MVA. See details »
2 Invested capital. See details »
3 2026 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the observed period. Initially, MVA increased from 130,661 US$ millions in January 2021 to 154,558 US$ millions in January 2022, before decreasing to 123,718 US$ millions in February 2023. A subsequent increase was noted in February 2024, reaching 156,355 US$ millions, followed by a decline to 139,649 US$ millions in January 2025, and a further decrease to 135,694 US$ millions in January 2026.
- Invested Capital
- Invested capital generally decreased from 28,534 US$ millions in January 2021 to 24,710 US$ millions in February 2023. A slight increase occurred in February 2024 (25,913 US$ millions) and January 2025 (26,276 US$ millions), with a substantial increase observed in January 2026, reaching 36,866 US$ millions. This represents the largest value for invested capital within the observed timeframe.
The MVA spread ratio demonstrates a significant degree of variability. It rose sharply from 457.91% in January 2021 to 587.76% in January 2022. Following this peak, the ratio decreased to 500.68% in February 2023, then increased again to 603.38% in February 2024. A decline was then observed in January 2025 (531.47%) and a more pronounced decrease in January 2026 (368.07%).
- MVA Spread Ratio Trend
- The MVA spread ratio peaked in February 2024 at 603.38%. The subsequent decline in the ratio, particularly the substantial decrease to 368.07% in January 2026, suggests a diminishing return on invested capital relative to the MVA generated. This decrease occurred concurrently with a significant increase in invested capital, indicating that while MVA remained substantial, it did not grow at the same rate as the capital employed.
The relationship between MVA and invested capital, as reflected in the MVA spread ratio, indicates a period of high efficiency in value creation (2021-2022), followed by a period of fluctuating efficiency, and ultimately a reduction in efficiency by the end of the observed period (2025-2026). The increasing invested capital in the final year, coupled with a decreasing MVA spread ratio, warrants further investigation into the factors driving capital allocation and its impact on value creation.
MVA Margin
Lowe’s Cos. Inc., MVA margin calculation, comparison to benchmarks
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred revenue | |||||||
| Adjusted net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| TJX Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29).
1 MVA. See details »
2 2026 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the observed period. Initially increasing from 2021 to 2022, it then decreased in 2023 before recovering in 2024. Subsequent years show a slight decline, though remaining above the 2023 level. Adjusted net sales experienced an initial increase, plateaued, and then decreased in 2024 and 2025, with a modest recovery in the final year presented.
- MVA Trend
- The MVA increased from US$130,661 million in 2021 to US$154,558 million in 2022, representing a substantial gain. A subsequent decline to US$123,718 million in 2023 was observed, followed by a significant recovery to US$156,355 million in 2024. The MVA then decreased to US$139,649 million in 2025 and further to US$135,694 million in 2026. Despite the recent declines, the MVA in 2026 remains above the 2023 value.
- Adjusted Net Sales Trend
- Adjusted net sales increased from US$90,111 million in 2021 to US$96,664 million in 2022, and remained relatively stable at US$96,822 million in 2023. A decrease was then noted in 2024, with sales falling to US$86,206 million. This downward trend continued in 2025, with sales reaching US$83,667 million, before a slight recovery to US$86,399 million in 2026.
- MVA Margin Trend
- The MVA margin demonstrated considerable variability. It rose from 145.00% in 2021 to 159.89% in 2022, then decreased to 127.78% in 2023. A substantial increase to 181.37% occurred in 2024, followed by a decrease to 166.91% in 2025 and a further decrease to 157.05% in 2026. The MVA margin generally reflects the relationship between MVA and adjusted net sales, and its fluctuations correlate with the changes observed in both metrics.
The peak MVA margin of 181.37% in 2024 coincided with the highest MVA value and a decrease in adjusted net sales, suggesting improved efficiency in value creation relative to sales. The subsequent decline in both MVA and MVA margin in 2025 and 2026 indicates a potential weakening of this efficiency.