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.
Paying user area
Try for free
Pfizer Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Pfizer Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Pfizer Inc., MVA calculation
US$ 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 of Pfizer
- The market value of the company exhibited growth from US$225,130 million at the end of 2020 to a peak of US$272,354 million by the end of 2021. Following this peak, a downward trend was observed with the market value declining to US$248,552 million in 2022 and continuing to decrease in subsequent years, reaching US$191,075 million by the end of 2024. This pattern indicates an initial strong market valuation followed by a steady contraction over three years.
- Invested capital
- Invested capital showed fluctuations throughout the period. It decreased from US$103,898 million at the end of 2020 to US$87,670 million in 2021, marking a reduction in capital deployment or asset base. However, this reversed significantly in 2022, with invested capital rising to US$110,746 million and continuing an upward trajectory to US$154,882 million by the end of 2023. In 2024, the invested capital decreased moderately to US$135,777 million. Overall, the trend reflects volatility with a significant increase mid-period before a decline in the final year.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, generally declined over the period. After increasing from US$121,232 million in 2020 to a peak of US$184,684 million in 2021, the MVA then fell sharply to US$137,806 million in 2022. This reduction continued at a more accelerated rate through 2023 and 2024, with MVA falling to US$62,651 million and then further to US$55,298 million. This indicates diminishing value creation relative to the capital invested, corresponding with the overall decline in market value despite fluctuations in invested capital.
MVA Spread Ratio
Pfizer Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 experienced a significant increase from 121,232 million US dollars in 2020 to a peak of 184,684 million in 2021. However, it then declined substantially in the subsequent years, dropping to 137,806 million in 2022 and continuing its downward trend to 62,651 million in 2023 and 55,298 million in 2024. This indicates a diminishing market valuation relative to invested capital, especially in the last two years of the period analyzed.
- Invested Capital
- Invested capital showed a declining trend initially, falling from 103,898 million US dollars in 2020 to 87,670 million in 2021. Subsequently, it increased markedly to 110,746 million in 2022 and further surged to 154,882 million in 2023. In 2024, invested capital slightly decreased to 135,777 million. This pattern suggests periods of increased capital allocation, possibly for growth or expansion, followed by a moderate reduction in the latest year.
- MVA Spread Ratio
- The MVA spread ratio exhibited substantial variability across the years. It started at 116.68% in 2020 and peaked sharply at 210.66% in 2021, reflecting strong value creation relative to invested capital during that year. Following this peak, there was a marked decline to 124.43% in 2022 and a further steep fall to approximately 40.45% in 2023, which remained relatively stable through 2024 at 40.73%. This decline indicates a significant reduction in value creation efficiency or market perception of added value in the later years.
- Summary of Trends
- Overall, the data reflect an initial period of strong market value appreciation and efficient capital use in 2020 and 2021, followed by a notable decline in market valuation and value creation efficiency in the subsequent years. The invested capital increases in 2022 and 2023 suggest substantial reinvestment or expansion efforts, though these have not translated into corresponding market value gains. The sustained low levels of MVA and MVA spread ratio towards 2023 and 2024 warrant further examination of operational performance and market conditions affecting value perception.
MVA Margin
Pfizer Inc., 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 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data presents several notable trends over the five-year period ending in 2024. Analysis reveals changing dynamics in market value added (MVA), revenues, and the MVA margin.
- Market Value Added (MVA)
- The MVA exhibits a fluctuating trend. It increased significantly from 121,232 million US dollars in 2020 to a peak of 184,684 million in 2021. However, following this peak, it declined sharply over the next three years to 55,298 million by 2024. This trajectory suggests that despite initial strong performance, the company experienced a reduction in market value added in recent years, indicating potential challenges in creating shareholder value or market confidence erosion.
- Revenues
- Revenues showed strong growth from 42,678 million US dollars in 2020 to 101,175 million in 2022, more than doubling in two years. However, this was followed by a significant contraction to 59,553 million in 2023, partly recovering to 63,627 million in 2024. This pattern reflects volatility in sales performance, with a pronounced decline after the 2022 peak that slightly improves in 2024 but remains well below the 2022 high.
- MVA Margin
- The MVA margin, which indicates market value added relative to revenues, declined steadily each year from 284.06% in 2020 to 86.91% in 2024. This consistent decline suggests diminishing efficiency in converting revenues into market value added, as the margin declined by approximately two-thirds over the period. This reduction may imply increasing cost pressures, declining profitability, or market valuation adjustments adversely impacting the company’s ability to generate value from its revenue base.
In summary, the data reflects a period of initial growth in both market value added and revenues, followed by a notable downturn and increased volatility. The sustained decline in MVA margin underscores a decreasing return on revenue in terms of market value creation, which warrants closer scrutiny of operational performance, profitability, and market conditions impacting the company.