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
- Common-Size Balance Sheet: Assets
- Analysis of Reportable Segments
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Analysis of Revenues
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MVA
Nike Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial trajectory from May 31, 2021, to May 31, 2026, is characterized by a significant and sustained contraction in Market Value Added (MVA). While the capital invested in the business remained relatively stable, the market's valuation of the entity declined sharply, resulting in a substantial erosion of shareholder wealth creation over the observed period.
- Market Value Erosion
- A severe downward trend is evident in the fair market value, which plummeted from US$ 262,763 million in 2021 to US$ 71,881 million by 2026. The most acute declines occurred between 2021 and 2022 and again between 2023 and 2024, with a brief period of stabilization observed between 2024 and 2025 before a final sharp decrease in 2026.
- Invested Capital Stability
- In contrast to the volatility of the market valuation, invested capital exhibited minimal variance. Values fluctuated within a narrow range, starting at US$ 20,927 million in 2021 and ending at US$ 21,555 million in 2026. This stability indicates that the decline in MVA was not driven by a reduction in the company's asset base or capital structure, but rather by a shift in market perception and valuation multiples.
- Market Value Added (MVA) Compression
- The MVA experienced a precipitous decline, falling from US$ 241,836 million in 2021 to US$ 50,326 million in 2026. Because MVA represents the difference between the market value and the invested capital, the near-constant nature of the invested capital means that the MVA trend almost perfectly mirrors the decline in market capitalization. The total reduction in MVA over the six-year period exceeds 79%, signaling a significant loss in the premium the market is willing to pay over the book value of invested capital.
The analysis reveals a decoupling between the internal capital investment and external market valuation. The persistence of invested capital levels suggests that the operational scale remained intact, yet the market's appraisal of the future growth prospects or risk profile of those investments deteriorated substantially.
MVA Spread Ratio
Nike Inc., MVA spread ratio calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 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 | |||||||
| lululemon athletica inc. | |||||||
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
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 financial trajectory between May 31, 2021, and May 31, 2026, is characterized by a substantial contraction in market-based valuation relative to the capital employed in the business.
- Market Value Added (MVA)
- A pronounced downward trend is observed in Market Value Added, which declined from US$ 241,836 million in 2021 to US$ 50,326 million by 2026. Despite a marginal recovery between 2024 and 2025, the overall trend indicates a significant erosion of the premium that the market assigns to the company over its invested capital.
- Invested Capital
- Invested capital exhibited relative stability throughout the period, fluctuating within a narrow range between US$ 19,851 million and US$ 22,088 million. The lack of significant volatility in this metric suggests that the decline in MVA is not driven by changes in the capital base, but rather by external market valuation factors or internal performance perceptions.
- MVA Spread Ratio
- The MVA spread ratio mirrors the decline of the MVA, falling from 1,155.62% in 2021 to 233.48% in 2026. This compression indicates a diminishing capacity to generate market value in excess of the invested capital. The most acute declines occurred between 2021 and 2022, and again between 2023 and 2024, marking periods of rapid devaluation relative to the company's asset base.
MVA Margin
Nike Inc., MVA margin calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Revenues | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| lululemon athletica inc. | |||||||
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
1 MVA. See details »
2 2026 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
An analysis of the financial performance from May 31, 2021, to May 31, 2026, reveals a significant and sustained contraction in market value added (MVA) and the associated MVA margin, despite initial growth in top-line revenues.
- Market Value Added (MVA) Trends
- A substantial downward trajectory is observed in the MVA, which decreased from 241,836 million US$ in 2021 to 50,326 million US$ by 2026. This represents a significant erosion of the market's valuation of the company's value creation above its invested capital. A marginal recovery occurred in 2025, with a slight increase to 95,971 million US$, before a sharp decline in the final period.
- Revenue Performance
- Revenues exhibited an initial upward trend, rising from 44,538 million US$ in 2021 to a peak of 51,362 million US$ in 2024. However, this growth trend reversed after 2024, with revenues contracting to 46,309 million US$ in 2025 and remaining stagnant at 46,398 million US$ in 2026.
- MVA Margin Analysis
- The MVA margin experienced a severe decline over the analyzed period, falling from 542.99% in 2021 to 108.47% in 2026. The most precipitous drops occurred between 2021 and 2022 and between 2023 and 2024. The margin mirrored the MVA trend with a brief stabilization and slight increase to 207.24% in 2025, followed by a final contraction. This indicates that the market's valuation of value creation relative to revenue generated has diminished considerably.
The divergence between revenue growth (up to 2024) and the continuous decline in MVA suggests that the market ceased to reward revenue expansion with higher valuation multiples. The concurrent decline in both revenues and MVA from 2024 onward suggests a period of diminished market confidence and reduced value creation efficiency.