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
Philip Morris International 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 period under review demonstrates significant fluctuations in market value and associated market value added. Initial observations reveal a decrease in market value added in 2022, followed by a substantial recovery and continued growth through 2025. Invested capital also exhibits a generally increasing trend, though with some variability.
- Market Value
- The market value experienced a modest increase from 2021 to 2022, rising from US$199,811 million to US$202,694 million. A notable decline occurred in 2023, with the market value decreasing to US$187,583 million. However, a strong recovery was observed in 2024, with the market value increasing significantly to US$273,082 million, and this upward trend continued into 2025, reaching US$335,901 million. This indicates increasing investor confidence or positive market perception in the later years of the period.
- Invested Capital
- Invested capital increased substantially from 2021 to 2022, moving from US$29,155 million to US$47,362 million. It continued to rise in 2023, reaching US$51,360 million, before experiencing a slight decrease in 2024 to US$48,314 million. A further increase was noted in 2025, with invested capital reaching US$53,321 million. The overall trend suggests a growing capital base, although the decrease in 2024 warrants further investigation.
- Market Value Added (MVA)
- Market value added began at US$170,656 million in 2021, then decreased to US$155,332 million in 2022. A further decline was observed in 2023, with MVA falling to US$136,223 million. However, 2024 saw a substantial increase in MVA, reaching US$224,768 million, and this positive momentum continued into 2025, with MVA reaching US$282,580 million. The strong correlation between market value and MVA is evident, with MVA fluctuations mirroring those of the overall market value. The significant increase in MVA in the latter part of the period suggests successful value creation for shareholders.
In summary, the period began with a relatively stable position, experienced a downturn in 2022 and 2023, and then demonstrated a strong recovery and growth trajectory through 2025. The increases in both market value and invested capital, coupled with the substantial rise in MVA, suggest a positive shift in the company’s financial performance and market perception during the latter years of the observed timeframe.
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MVA Spread Ratio
Philip Morris International Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 282,580) | 224,768) | 136,223) | 155,332) | 170,656) | |
| Invested capital2 | 53,321) | 48,314) | 51,360) | 47,362) | 29,155) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 529.96% | 465.22% | 265.23% | 327.97% | 585.34% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | 313.04% | 291.19% | 258.44% | 267.55% | 289.24% | |
| Mondelēz International Inc. | 56.86% | 50.91% | 97.98% | 73.56% | 85.16% | |
| PepsiCo Inc. | 227.00% | 212.51% | 265.48% | 296.11% | 297.67% | |
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 × 282,580 ÷ 53,321 = 529.96%
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited considerable fluctuation over the five-year period. Initially decreasing from 2021 to 2023, it experienced substantial growth in 2024 and 2025. Simultaneously, Invested Capital generally increased, though with a slight decrease observed between 2022 and 2023. The MVA spread ratio, reflecting the relationship between MVA and Invested Capital, mirrored the MVA trend, demonstrating a decline followed by a significant recovery.
- Market Value Added (MVA)
- The MVA began at US$170,656 million in 2021, declining to US$136,223 million by 2023. A notable turnaround occurred in 2024, with MVA increasing to US$224,768 million, and continued upward to US$282,580 million in 2025. This suggests a strengthening of the company’s ability to generate value for its investors in the latter part of the period.
- Invested Capital
- Invested Capital increased from US$29,155 million in 2021 to US$47,362 million in 2022, and further to US$51,360 million in 2023. A slight decrease was observed in 2024, falling to US$48,314 million, before rising again to US$53,321 million in 2025. The overall trend indicates a growing capital base, despite the temporary dip.
- MVA Spread Ratio
- The MVA spread ratio, which measures MVA as a percentage of Invested Capital, decreased significantly from 585.34% in 2021 to 265.23% in 2023. This decline corresponded with the decrease in MVA and the increase in Invested Capital. The ratio then rebounded sharply, reaching 465.22% in 2024 and 529.96% in 2025, driven by the substantial increase in MVA. This indicates an improving efficiency in value creation relative to the capital employed.
The observed patterns suggest a period of value erosion between 2021 and 2023, followed by a strong recovery and enhanced value creation in 2024 and 2025. The increasing MVA spread ratio in the latter years indicates that the company is generating more value per dollar of invested capital.
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MVA Margin
Philip Morris International Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 282,580) | 224,768) | 136,223) | 155,332) | 170,656) | |
| Net revenues | 40,648) | 37,878) | 35,174) | 31,762) | 31,405) | |
| Performance Ratio | ||||||
| MVA margin2 | 695.19% | 593.40% | 387.28% | 489.05% | 543.41% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Coca-Cola Co. | 606.62% | 537.42% | 471.88% | 497.46% | 600.94% | |
| Mondelēz International Inc. | 90.78% | 84.21% | 167.29% | 149.09% | 182.53% | |
| PepsiCo Inc. | 201.16% | 177.39% | 217.79% | 238.05% | 261.55% | |
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 ÷ Net revenues
= 100 × 282,580 ÷ 40,648 = 695.19%
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited considerable fluctuation between 2021 and 2025. Initially decreasing from 2021 to 2023, it experienced substantial growth in the subsequent two years. Simultaneously, Net Revenues demonstrated a consistent upward trajectory throughout the five-year period. The MVA margin, calculated as a percentage, mirrored the MVA trend, declining initially before experiencing significant increases.
- Market Value Added (MVA)
- The MVA began at US$170,656 million in 2021, declining to US$136,223 million by 2023. A significant recovery commenced in 2024, with MVA reaching US$224,768 million, and continued into 2025, culminating in US$282,580 million. This indicates a strengthening of the market’s perception of the company’s value creation over the latter part of the analyzed period.
- Net Revenues
- Net Revenues increased steadily from US$31,405 million in 2021 to US$40,648 million in 2025. The year-over-year growth was relatively consistent, suggesting a stable expansion of the company’s sales performance. The increase from 2023 to 2024 was particularly notable, rising from US$35,174 million to US$37,878 million.
- MVA Margin
- The MVA margin decreased from 543.41% in 2021 to 387.28% in 2023, reflecting the decline in MVA relative to Net Revenues. However, the margin rebounded sharply in 2024 to 593.40% and continued to increase to 695.19% in 2025. This substantial increase suggests that the company is generating a greater amount of value for each dollar of revenue, particularly in the later years of the period. The margin’s sensitivity to changes in MVA is apparent.
The divergence between the declining MVA and increasing Net Revenues from 2021 to 2023 warrants further investigation. The subsequent convergence and strong positive correlation between MVA and MVA margin from 2024 to 2025 suggest a positive shift in market sentiment and improved value creation efficiency.
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