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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- Statement of Comprehensive Income
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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MVA
Procter & Gamble Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of P&G
- The market value shows an overall increasing trend from June 2020 to June 2024, rising from 369,749 million US dollars to a peak of 428,654 million US dollars. However, in June 2025, there is a decline to 388,776 million US dollars, indicating a reduction in market valuation after several years of growth.
- Invested Capital
- Invested capital exhibits a relatively stable pattern with minor fluctuations over the period. It decreased from 101,100 million US dollars in June 2020 to 93,924 million US dollars in June 2022, followed by a gradual increase reaching 100,282 million US dollars by June 2025. This suggests moderate adjustments in capital deployment without significant expansion or contraction.
- Market Value Added (MVA)
- Market value added mirrors the trend in market value, increasing consistently from 268,649 million US dollars in June 2020 to 331,013 million US dollars in June 2024. Subsequently, MVA declines to 288,494 million US dollars in June 2025. This pattern indicates that the company's overall market value advantage over invested capital improved steadily but faced a setback in the last reported year.
- General Observations
- The data reflects a positive growth trajectory in market valuation and value creation up to mid-2024, accompanied by relative stability in invested capital. The downturn in both market value and market value added in June 2025 may warrant further investigation to identify underlying causes such as market conditions or company-specific factors. The slight recovery in invested capital at the end suggests ongoing capital management efforts despite fluctuating market perceptions.
MVA Spread Ratio
Procter & Gamble Co., MVA spread ratio calculation
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
- Market Value Added (MVA)
- The Market Value Added showed a generally upward trend from June 2020 through June 2024, increasing from 268,649 million US dollars in 2020 to a peak of 331,013 million US dollars in 2024. However, in June 2025, a decline is observed, with the MVA dropping to 288,494 million US dollars. This indicates a significant growth period followed by a recent contraction.
- Invested Capital
- Invested capital demonstrated a slight decrease from 101,100 million US dollars in 2020 to a low of 93,924 million US dollars in 2022. After this period, invested capital gradually increased again, reaching 100,282 million US dollars by June 2025. This pattern suggests some initial divestment or efficiency improvements, followed by reinvestment or expansion efforts in later years.
- MVA Spread Ratio
- The MVA spread ratio, reflecting the premium of market value over invested capital, exhibited a consistent upward trend from 265.73% in 2020 to a high of 339.01% in 2024, suggesting increasing value creation relative to invested capital. In 2025, this ratio declined to 287.68%, paralleling the reduction in MVA, which may imply a decrease in perceived profitability or market valuation strength compared to prior years.
MVA Margin
Procter & Gamble Co., MVA margin calculation
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
- Market Value Added (MVA)
- The Market Value Added shows an overall upward trend from 2020 to 2024, increasing from 268,649 million US dollars to a peak of 331,013 million US dollars in 2024. However, this upward momentum reverses in 2025, with MVA declining to 288,494 million US dollars. This suggests a significant value creation over the initial years, followed by a notable reduction in market value added in the final year examined.
- Net Sales
- Net sales demonstrate consistent growth throughout the entire period from 2020 to 2025. Starting at 70,950 million US dollars in 2020, sales increased steadily each year, reaching 84,284 million US dollars in 2025. The growth rate appears relatively moderate but stable, indicating sustained expansion in revenue generation without sharp fluctuations.
- MVA Margin
- The MVA margin, expressed as a percentage, reveals some variability over the timeline. It starts at a high level of 378.64% in 2020 and decreases slightly in 2021 and 2022, reaching 354.79%. In 2023 and 2024, the margin rises again to 371.43% and 393.88%, respectively, indicating improved efficiency in converting sales into market value added. Nevertheless, in 2025, there is a notable decline to 342.29%, the lowest margin within the period, which corresponds with the drop observed in market value added that year.
- Summary of Trends
- The data indicates a strong performance in both market valuation and sales from 2020 through 2024. Despite the continuous rise in net sales, a decline in market value added and margin in 2025 suggests emerging pressures or challenges affecting value creation. The disparity between steady sales growth and the falling MVA margin in 2025 may warrant further investigation into cost structures, market conditions, or other factors influencing shareholder value during that period.