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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- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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MVA
McDonald’s 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 »
The market value of the company demonstrates a consistent upward trajectory over the five-year period. Invested capital exhibits some fluctuation but also shows an overall increasing trend. Consequently, market value added (MVA) increases steadily throughout the observed timeframe.
- Market Value
- The market value increased from US$235,927 million in 2021 to US$289,891 million in 2025. This represents a cumulative growth of approximately 22.9% over the five years. The largest year-over-year increase occurred between 2022 and 2023, with an increase of US$26,447 million. Growth rates decelerated slightly in subsequent years, but remained positive.
- Invested Capital
- Invested capital decreased slightly from US$47,779 million in 2021 to US$45,461 million in 2022. However, it then increased to US$50,097 million in 2023, followed by a minor decrease to US$49,627 million in 2024, and finally rose to US$53,916 million in 2025. The overall trend indicates a net increase in invested capital over the period, though with some volatility.
- Market Value Added (MVA)
- MVA experienced consistent growth, rising from US$188,148 million in 2021 to US$235,975 million in 2025. This represents a cumulative increase of approximately 25.4%. The pattern of growth in MVA mirrors the growth in market value, with the largest absolute increase occurring between 2022 and 2023 (US$11,811 million). The increasing MVA suggests the company is generating value for its investors beyond the capital they have invested.
The consistent growth in MVA, coupled with the increasing market value, suggests positive investor sentiment and effective value creation. While invested capital experienced some fluctuation, the overall upward trend supports the company’s ability to utilize capital effectively.
MVA Spread Ratio
McDonald’s Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| Starbucks Corp. | ||||||
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 consistent upward trajectory between 2021 and 2025. Simultaneously, Invested Capital fluctuated, showing a decrease in 2022 before increasing in subsequent years. The MVA spread ratio, calculated from these figures, demonstrates a generally increasing trend with a slight moderation in the most recent period.
- Market Value Added (MVA)
- MVA increased from US$188,148 million in 2021 to US$235,975 million in 2025, representing a cumulative growth of approximately 25.3%. The largest year-over-year increase occurred between 2022 and 2023, with an addition of US$21,811 million. Growth rates decelerated slightly in 2024 and 2025, though MVA continued to expand.
- Invested Capital
- Invested Capital decreased from US$47,779 million in 2021 to US$45,461 million in 2022, a reduction of approximately 5.1%. It then increased to US$50,097 million in 2023, followed by a slight decrease to US$49,627 million in 2024, and finally rose to US$53,916 million in 2025. This indicates some volatility in capital deployment over the period.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the MVA relative to Invested Capital, increased from 393.79% in 2021 to 447.88% in 2024. This suggests a growing efficiency in generating value from invested capital. However, the ratio experienced a slight decline to 437.67% in 2025, potentially indicating a moderation in the rate of value creation relative to capital employed. Despite this slight decrease, the ratio remained significantly higher in 2025 than in 2021.
Overall, the observed trends suggest a positive relationship between MVA and Invested Capital, with the MVA spread ratio indicating an increasing ability to generate value for each dollar invested, although the rate of increase slowed in the final year of the observed period.
MVA Margin
McDonald’s Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenues, initial franchise fees | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| Starbucks Corp. | ||||||
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 revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) and associated MVA margin exhibited consistent growth between 2021 and 2025. MVA increased steadily over the five-year period, while the MVA margin demonstrated a progressive, albeit decelerating, improvement.
- Market Value Added (MVA)
- The MVA increased from US$188,148 million in 2021 to US$235,975 million in 2025, representing a cumulative increase of approximately 25.37%. The largest absolute increase occurred between 2021 and 2022 (US$5,568 million), while the smallest occurred between 2024 and 2025 (US$13,708 million). The rate of MVA growth appears to be slowing over time.
- Adjusted Revenues
- Adjusted revenues experienced a more moderate growth trajectory. Revenues were relatively flat between 2021 and 2022, then increased from US$23,202 million in 2022 to US$27,052 million in 2025, representing a cumulative increase of approximately 16.8%. The largest absolute increase in adjusted revenues occurred between 2022 and 2023 (US$2,324 million).
- MVA Margin
- The MVA margin increased consistently from 808.92% in 2021 to 872.30% in 2025. However, the magnitude of the annual increases diminished over the period. The increase from 2021 to 2022 was 26.0%, while the increase from 2024 to 2025 was only 14.4%. This suggests a diminishing return on revenue generation in terms of market value creation, despite continued absolute growth in both MVA and adjusted revenues. The consistently high MVA margin indicates a substantial premium placed on the company’s ability to generate returns above its cost of capital.
The observed trends suggest that while the company continues to create value, as evidenced by the increasing MVA, the efficiency of value creation, as measured by the MVA margin, is experiencing diminishing returns. Further investigation may be warranted to understand the factors contributing to this deceleration in margin improvement.