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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- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Aggregate Accruals
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MVA
Thermo Fisher Scientific 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 »
An examination of the financial information reveals trends in market value, invested capital, and market value added over a five-year period. The market value of the company experienced initial fluctuation, followed by a decline, while invested capital generally increased before experiencing a decrease and subsequent rise. Market value added mirrored the pattern of the market value, exhibiting a decreasing trend overall.
- Market Value
- The market value began at US$248,912 million in 2021, decreased to US$244,583 million in 2022, and then slightly recovered to US$247,771 million in 2023. A more substantial decline was observed in 2024, falling to US$231,619 million, and continued to US$231,283 million in 2025. This indicates a general downward trend in the company’s market valuation over the period.
- Invested Capital
- Invested capital demonstrated an increasing trend from US$79,776 million in 2021 to US$85,573 million in 2023. A decrease was noted in 2024, with invested capital falling to US$82,071 million. However, it subsequently increased significantly in 2025, reaching US$94,150 million. This suggests a period of capital investment followed by a potential restructuring or reallocation, and then renewed investment.
- Market Value Added (MVA)
- Market value added started at US$169,136 million in 2021 and decreased to US$161,769 million in 2022. It remained relatively stable in 2023 at US$162,198 million before declining to US$149,548 million in 2024 and further to US$137,133 million in 2025. The consistent decline in MVA suggests that the company’s value creation, relative to its invested capital, has diminished over the observed timeframe.
The divergence between the trends in invested capital and market value added is noteworthy. While invested capital increased overall, the corresponding market value added decreased, indicating a potentially diminishing return on invested capital. Further investigation into the factors driving these trends would be warranted.
MVA Spread Ratio
Thermo Fisher Scientific Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals 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 generally declining trend over the five-year period. While initially substantial, the MVA decreased from US$169,136 million in 2021 to US$137,133 million in 2025. Invested capital demonstrated an increasing pattern until 2025, rising from US$79,776 million to US$94,150 million. The MVA spread ratio, reflecting the relationship between MVA and invested capital, correspondingly decreased throughout the period.
- Market Value Added (MVA)
- The MVA experienced a decrease of approximately 19.18% between 2021 and 2025. The largest single-year decline occurred between 2023 and 2024, with a reduction of US$12,650 million. The decrease suggests a diminishing ability to generate value for investors relative to the capital employed.
- Invested Capital
- Invested capital increased by 17.92% over the period, indicating continued investment in the business. The increase was not consistent year-over-year, with a decrease observed between 2023 and 2024. The rise in invested capital, coupled with the declining MVA, suggests that the returns on new investments may not be keeping pace with the capital deployed.
- MVA Spread Ratio
- The MVA spread ratio decreased consistently from 212.01% in 2021 to 145.65% in 2025. This indicates a weakening relationship between the value created (MVA) and the capital invested. The ratio’s decline mirrors the trends in both MVA and invested capital, suggesting that the efficiency of capital utilization in generating market value is diminishing. The substantial decrease from 182.22% in 2024 to 145.65% in 2025 warrants further investigation.
Overall, the observed trends suggest a potential erosion of value creation efficiency. While the company continues to invest capital, the returns generated, as reflected in the MVA, are not keeping pace, leading to a declining MVA spread ratio.
MVA Margin
Thermo Fisher Scientific Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals 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 fluctuating pattern over the five-year period. Initially, MVA decreased from US$169,136 million in 2021 to US$161,769 million in 2022, before experiencing a slight increase to US$162,198 million in 2023. Subsequently, a more pronounced decline was observed, with MVA falling to US$149,548 million in 2024 and further decreasing to US$137,133 million in 2025.
Revenues demonstrated an overall upward trajectory, increasing from US$39,211 million in 2021 to US$44,915 million in 2022. While revenues decreased slightly to US$42,857 million in 2023, they remained relatively stable at US$42,879 million in 2024 before rising again to US$44,556 million in 2025.
- MVA Margin
- The MVA margin began at a high of 431.35% in 2021, indicating a substantial value creation relative to revenue. A significant decrease was noted in 2022, with the margin falling to 360.17%. The margin experienced a partial recovery in 2023, reaching 378.46%, but continued its downward trend in subsequent years, declining to 348.77% in 2024 and 307.78% in 2025. This suggests a diminishing rate of value creation relative to revenue generation over the observed period.
Despite increasing revenues, the declining MVA and MVA margin suggest that the market’s perception of the company’s ability to generate future economic profits is decreasing. The divergence between revenue growth and MVA performance warrants further investigation to understand the underlying factors contributing to this trend, such as changes in investor expectations, competitive pressures, or internal operational efficiencies.