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
Merck & Co. 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 demonstrates a generally increasing trend over the observed period, though with significant fluctuation. Invested capital also exhibits an overall upward trajectory, but at a more consistent pace. Consequently, market value added (MVA) mirrors the pattern of the market value, showing substantial growth initially followed by a decline and subsequent recovery.
- Market Value Trend
- The market value increased from US$228,486 million in 2021 to US$305,174 million in 2022, representing a considerable gain. Further growth was observed in 2023, reaching US$358,472 million. However, a substantial decrease occurred in 2024, with the market value falling to US$263,317 million. The final year, 2025, shows a recovery to US$351,762 million, approaching the 2023 peak.
- Invested Capital Trend
- Invested capital experienced a moderate increase from US$70,735 million in 2021 to US$73,942 million in 2022. A slight decrease was noted in 2023, with invested capital at US$69,966 million. Subsequent years show more pronounced growth, reaching US$79,426 million in 2024 and US$97,963 million in 2025. This indicates a consistent, though not linear, commitment of capital to the business.
- Market Value Added (MVA) Trend
- MVA increased significantly from US$157,751 million in 2021 to US$231,232 million in 2022, mirroring the market value growth. The largest increase in MVA occurred between 2022 and 2023, reaching US$288,506 million. A substantial decline was observed in 2024, with MVA falling to US$183,891 million, corresponding with the decrease in market value. MVA recovered in 2025 to US$253,799 million, though it did not fully regain the 2023 level.
The correlation between market value and MVA is strong, suggesting that changes in investor perception of the company’s future prospects are a primary driver of MVA. The increase in invested capital throughout the period, coupled with the fluctuations in market value, indicates a dynamic relationship between capital allocation and shareholder value creation.
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MVA Spread Ratio
Merck & Co. Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 253,799) | 183,891) | 288,506) | 231,232) | 157,751) | |
| Invested capital2 | 97,963) | 79,426) | 69,966) | 73,942) | 70,735) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 259.08% | 231.53% | 412.35% | 312.72% | 223.02% | |
| 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% | |
| Eli Lilly & Co. | 1,955.73% | 2,282.35% | 2,391.43% | 1,240.67% | 834.21% | |
| 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% | |
| 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 × 253,799 ÷ 97,963 = 259.08%
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited substantial fluctuations over the five-year period. Initially, MVA demonstrated strong growth, peaking in 2023 before experiencing a significant decline in 2024, followed by a partial recovery in 2025. Invested capital generally increased throughout the period, although a decrease was noted between 2022 and 2023. The MVA spread ratio mirrored the trend in MVA, showing considerable volatility.
- Market Value Added (MVA)
- MVA increased from US$157,751 million in 2021 to US$231,232 million in 2022, representing a growth of approximately 46.5%. Further growth was observed in 2023, reaching US$288,506 million. However, 2024 saw a substantial decrease to US$183,891 million, a decline of approximately 36.5% from the prior year. A partial recovery occurred in 2025, with MVA rising to US$253,799 million.
- Invested Capital
- Invested capital showed a generally increasing trend, rising from US$70,735 million in 2021 to US$73,942 million in 2022. A slight decrease was observed in 2023, with invested capital falling to US$69,966 million. Subsequently, invested capital increased to US$79,426 million in 2024 and continued to rise to US$97,963 million in 2025, representing the largest year-over-year increase in the observed period.
- MVA Spread Ratio
- The MVA spread ratio demonstrated significant volatility. It increased substantially from 223.02% in 2021 to 312.72% in 2022, and further to 412.35% in 2023, indicating an increasing return on invested capital. The ratio then decreased sharply to 231.53% in 2024, coinciding with the decline in MVA. A moderate increase was observed in 2025, with the ratio reaching 259.08%. The ratio’s fluctuations suggest a dynamic relationship between market value and invested capital.
The decline in MVA and the MVA spread ratio in 2024 warrants further investigation to determine the underlying causes. The subsequent partial recovery in 2025 suggests potential corrective actions or favorable market conditions. The increasing invested capital in 2024 and 2025, coupled with the MVA recovery, may indicate strategic investments contributing to future value creation.
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MVA Margin
Merck & Co. Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 253,799) | 183,891) | 288,506) | 231,232) | 157,751) | |
| Sales | 65,011) | 64,168) | 60,115) | 59,283) | 48,704) | |
| Performance Ratio | ||||||
| MVA margin2 | 390.39% | 286.58% | 479.92% | 390.05% | 323.90% | |
| 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% | |
| Eli Lilly & Co. | 1,488.57% | 1,813.29% | 2,058.25% | 1,055.71% | 769.37% | |
| 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% | |
| 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 ÷ Sales
= 100 × 253,799 ÷ 65,011 = 390.39%
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations between 2021 and 2025. Initially, MVA demonstrated substantial growth, followed by a considerable decline, and then a partial recovery. Sales also increased over the period, though at a more moderate pace than MVA.
- Market Value Added (MVA)
- MVA increased from US$157,751 million in 2021 to US$231,232 million in 2022, representing a growth of approximately 46.5%. Further growth was observed in 2023, with MVA reaching US$288,506 million. However, a substantial decrease occurred in 2024, with MVA falling to US$183,891 million. A partial recovery was then noted in 2025, with MVA rising to US$253,799 million. This volatility suggests potential sensitivity to market conditions or company-specific events.
- Sales
- Sales increased steadily throughout the period. From US$48,704 million in 2021, sales grew to US$59,283 million in 2022, US$60,115 million in 2023, US$64,168 million in 2024, and finally reached US$65,011 million in 2025. The growth rate in sales decelerated over time, indicating potentially maturing market penetration or increased competition.
- MVA Margin
- The MVA margin experienced considerable variation. It rose sharply from 323.90% in 2021 to 390.05% in 2022, and peaked at 479.92% in 2023. A significant decline was then observed in 2024, with the margin falling to 286.58%. The margin partially recovered in 2025, reaching 390.39%. The MVA margin’s fluctuations correlate with the changes in MVA, indicating that the company’s value creation relative to sales is not consistent. The high margins observed in 2022 and 2023, followed by the substantial drop in 2024, warrant further investigation to understand the underlying drivers.
The relationship between MVA and sales suggests that changes in MVA are not solely driven by revenue growth. The substantial fluctuations in the MVA margin indicate that factors beyond sales volume, such as investor sentiment, cost of capital, or strategic initiatives, significantly influence the company’s market valuation.
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