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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Sherwin-Williams Co. pages available for free this week:
- Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
Sherwin-Williams Co., MVA calculation
US$ in thousands
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 company exhibited volatility over the five-year period. Initially decreasing from 2021 to 2022, it subsequently increased through 2023 and 2024, before experiencing a modest increase in 2025. Invested capital generally trended upward, although a slight decrease was noted between 2022 and 2023. Market value added (MVA) mirrored the pattern of the market value, declining in 2022, then increasing through 2024, and leveling off in 2025.
- Market Value Trend
- The market value decreased significantly from US$82,000,280 thousand in 2021 to US$68,837,105 thousand in 2022, representing a decline of approximately 15.9%. This was followed by a substantial recovery, with the market value reaching US$90,153,527 thousand in 2023 and further increasing to US$99,032,075 thousand in 2024. The growth rate slowed in 2025, with the market value reaching US$100,887,734 thousand, a modest increase of 1.8% from the prior year.
- Invested Capital Trend
- Invested capital increased from US$15,808,100 thousand in 2021 to US$17,346,300 thousand in 2022, a growth of approximately 9.7%. A slight decrease was observed in 2023, with invested capital falling to US$16,412,900 thousand. This trend reversed in subsequent years, with invested capital reaching US$16,707,900 thousand in 2024 and US$19,297,800 thousand in 2025, representing a substantial increase of approximately 15.5% from 2024.
- Market Value Added (MVA) Trend
- MVA experienced a significant decrease from US$66,192,180 thousand in 2021 to US$51,490,805 thousand in 2022, mirroring the decline in market value. The subsequent years saw MVA increase in tandem with the market value, reaching US$73,740,627 thousand in 2023 and US$82,324,175 thousand in 2024. The rate of increase slowed considerably in 2025, with MVA reported at US$81,589,934 thousand, a decrease of approximately 0.9% from 2024.
- Relationship between MVA, Market Value, and Invested Capital
- MVA consistently represented a substantial portion of the company’s market value throughout the period. The fluctuations in MVA closely followed those of the overall market value, indicating a strong correlation. The increase in invested capital in 2025 did not translate into a proportional increase in MVA, suggesting potential factors influencing value creation beyond capital investment.
MVA Spread Ratio
Sherwin-Williams Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Linde plc | ||||||
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 fluctuations over the five-year period, while Invested Capital generally increased. The MVA spread ratio demonstrated a notable pattern of change, reflecting the relationship between MVA and Invested Capital.
- Market Value Added (MVA)
- The MVA decreased from US$66,192,180 thousand in 2021 to US$51,490,805 thousand in 2022, representing a substantial decline. A recovery was then observed in 2023, with MVA rising to US$73,740,627 thousand. Further growth occurred in 2024, reaching US$82,324,175 thousand, before experiencing a slight decrease to US$81,589,934 thousand in 2025. Overall, the MVA demonstrates volatility but concludes the period at a level higher than in 2021.
- Invested Capital
- Invested Capital showed a consistent upward trend throughout the period. It increased from US$15,808,100 thousand in 2021 to US$17,346,300 thousand in 2022, and continued to rise to US$16,412,900 thousand in 2023. A further increase to US$16,707,900 thousand was noted in 2024, culminating in US$19,297,800 thousand in 2025. This indicates a growing capital base over the five years.
- MVA Spread Ratio
- The MVA spread ratio experienced significant variation. It began at 418.72% in 2021, then decreased substantially to 296.84% in 2022, coinciding with the decline in MVA. The ratio rebounded in 2023 to 449.28%, and continued to increase to 492.73% in 2024, reflecting the growth in MVA relative to Invested Capital. A slight decrease to 422.79% was observed in 2025. The ratio’s movements suggest a strong correlation with changes in MVA, as the denominator, Invested Capital, increased at a slower pace.
The observed fluctuations in the MVA spread ratio suggest a dynamic relationship between the value created (MVA) and the capital employed. While Invested Capital consistently increased, the MVA spread ratio’s performance was more heavily influenced by the changes in MVA itself.
MVA Margin
Sherwin-Williams Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Linde plc | ||||||
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 sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the five-year period. Initially, a decrease in MVA was observed, followed by a recovery and subsequent stabilization. Net sales demonstrated a consistent upward trend throughout the period. The MVA margin, calculated as MVA relative to net sales, showed corresponding volatility and an overall increase before a slight decline in the final year.
- Market Value Added (MVA)
- The MVA decreased from US$66,192,180 thousand in 2021 to US$51,490,805 thousand in 2022, representing a significant decline. A substantial recovery occurred in 2023, with MVA rising to US$73,740,627 thousand. Further growth was noted in 2024, reaching US$82,324,175 thousand, before a modest decrease to US$81,589,934 thousand in 2025. This suggests a period of value creation followed by a leveling off.
- Net Sales
- Net sales increased steadily from US$19,944,600 thousand in 2021 to US$23,574,300 thousand in 2025. The year-over-year growth rates were relatively consistent, indicating a stable expansion of revenue generation. The increase from 2024 to 2025 was the smallest, at approximately 2.05%.
- MVA Margin
- The MVA margin experienced considerable variation. It decreased sharply from 331.88% in 2021 to 232.48% in 2022, coinciding with the decline in MVA. The margin then increased to 319.89% in 2023 and further to 356.40% in 2024, reflecting the recovery and growth in MVA relative to sales. A slight decrease to 346.10% was observed in 2025. The overall trend indicates improved efficiency in generating market value from each dollar of sales, although the most recent year shows a minor reduction in this efficiency.
The relationship between MVA and net sales suggests that while sales consistently increased, the creation of market value was not always directly proportional. The fluctuations in the MVA margin highlight the impact of factors beyond sales revenue on shareholder value.