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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- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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MVA
Pfizer 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 entity decreased from 2021 to 2023, then exhibited a slight recovery in 2024 and 2025. Invested capital demonstrated an increasing trend from 2021 to 2023, followed by a decrease in 2024 and a modest increase in 2025. Market value added (MVA) experienced a substantial decline from 2021 to 2023, stabilizing in 2024 and showing a limited improvement in 2025.
- Market Value Trend
- The market value began at US$272,354 million in 2021, declining to US$248,552 million in 2022, and further decreasing to US$217,533 million in 2023. A partial recovery was noted in 2024, reaching US$190,640 million, and continued modestly to US$205,166 million in 2025. This suggests potential shifts in investor sentiment or company performance impacting valuation.
- Invested Capital Trend
- Invested capital increased from US$87,670 million in 2021 to US$110,746 million in 2022, and then significantly to US$154,882 million in 2023. This growth was followed by a reduction to US$135,342 million in 2024, with a slight increase to US$139,753 million in 2025. The increase in invested capital through 2023 may indicate strategic investments, while the subsequent decrease could reflect asset sales or reduced capital expenditure.
- Market Value Added (MVA) Trend
- MVA started at US$184,684 million in 2021, decreasing to US$137,806 million in 2022, and experiencing a significant drop to US$62,651 million in 2023. The decline slowed in 2024, with MVA at US$55,298 million, and showed a slight improvement to US$65,413 million in 2025. The substantial decrease in MVA suggests that the value created for investors has diminished relative to the capital invested, potentially due to lower profitability or increased risk perception.
The relationship between invested capital and MVA indicates that while the company increased its capital base through 2023, the corresponding value creation for shareholders did not keep pace, resulting in a declining MVA. The stabilization and slight recovery in both MVA and market value in 2024 and 2025 may suggest a potential turning point, but further monitoring is warranted to confirm a sustained positive trend.
MVA Spread Ratio
Pfizer Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| 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: 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 significant decline from 2021 to 2023, followed by a period of stabilization and modest growth. Simultaneously, Invested Capital increased substantially over the same period. The MVA spread ratio reflects these movements, demonstrating a corresponding decrease followed by a leveling off and slight improvement.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$184,684 million. A substantial decrease was observed in 2022, falling to US$137,806 million, and this downward trend continued into 2023, with the MVA reaching US$62,651 million. The decline slowed in 2024, with a value of US$55,298 million, and a slight recovery occurred in 2025, reaching US$65,413 million. This suggests a period of value destruction followed by potential stabilization.
- Invested Capital
- Invested Capital showed a consistent upward trajectory throughout the period. Beginning at US$87,670 million in 2021, it increased to US$110,746 million in 2022, and further to US$154,882 million in 2023. A decrease was noted in 2024, with a value of US$135,342 million, but it continued to rise in 2025, reaching US$139,753 million. This indicates ongoing investment in the business.
- MVA Spread Ratio
- The MVA spread ratio mirrored the trend in MVA, experiencing a considerable decline. It began at 210.66% in 2021, decreased to 124.43% in 2022, and further to 40.45% in 2023. The ratio stabilized in 2024 at 40.86% and showed a modest increase to 46.81% in 2025. This ratio suggests that the value created relative to invested capital has diminished, although the recent increase indicates a potential improvement in efficiency or value creation.
The divergence between the increasing Invested Capital and the initially declining MVA suggests that investments made did not immediately translate into proportional value creation for stakeholders. The stabilization of MVA and the slight increase in the MVA spread ratio in the later years may indicate that recent investments are beginning to yield positive results, or that the rate of value destruction has slowed.
MVA Margin
Pfizer Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| 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: 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 ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a significant decline from 2021 to 2023, followed by a period of stabilization and modest growth. Revenues also demonstrated volatility over the observed period. The MVA margin, calculated as MVA relative to revenues, reflects these fluctuations and provides insight into the value creation efficiency of the organization.
- Market Value Added (MVA)
- The MVA began at US$184,684 million in 2021. A substantial decrease was observed in 2022, falling to US$137,806 million. This downward trend continued into 2023, with MVA reaching US$62,651 million. A slight decline occurred in 2024, reaching US$55,298 million, before a modest recovery to US$65,413 million in 2025. The overall trend indicates a period of value erosion followed by a potential stabilization.
- Revenues
- Revenues increased from US$82,145 million in 2021 to US$101,175 million in 2022, representing a period of growth. However, revenues then decreased significantly in 2023 to US$59,553 million. A partial recovery was seen in 2024, with revenues reaching US$63,627 million, and remained relatively stable in 2025 at US$62,579 million. The revenue pattern suggests a potential shift in market conditions or company strategy impacting sales performance.
- MVA Margin
- The MVA margin began at a high of 224.83% in 2021, indicating substantial value creation relative to revenue. The margin decreased considerably to 136.21% in 2022, mirroring the decline in MVA. This downward trend continued, reaching 105.20% in 2023 and further decreasing to 86.91% in 2024. A slight increase to 104.53% was observed in 2025. The MVA margin’s trajectory suggests a diminishing ability to generate value from each dollar of revenue, although the 2025 figure indicates a potential for improvement.
The interplay between MVA and revenues suggests that while revenue fluctuations contribute to MVA changes, the more pronounced declines in MVA relative to revenue indicate factors beyond revenue alone are influencing value creation. Further investigation into cost structures, investment efficiency, and market perceptions would be necessary to fully understand the observed trends.