Walt Disney Co. (NYSE:DIS)

The data presents key financial metrics over a six-year period, focusing on market value, invested capital, and market value added (MVA).

Market (fair) value

The market value experienced a slight increase from 2020 to 2021, moving from 351,310 million USD to 352,036 million USD. However, there was a notable decline in 2022 to 233,647 million USD, followed by a small reduction again in 2023 to 232,131 million USD. The value recovered moderately in 2024 to 249,753 million USD but then declined once more in 2025 to 239,253 million USD. Overall, this indicates a downward trend in market value after 2021, with some volatility and partial recovery before declining again.

Invested capital

Invested capital remained relatively stable from 2020 through 2023, fluctuating slightly between approximately 173,000 and 175,000 million USD. Starting in 2024, invested capital decreased noticeably to 166,066 million USD and declined further to 165,308 million USD in 2025. This suggests a modest reduction in invested capital in the most recent years after a period of stability.

Market value added (MVA)

MVA remained relatively consistent between 2020 and 2021, hovering around 176,700 to 179,100 million USD. There was a considerable drop in 2022 to 59,670 million USD, then a slight decline in 2023 to 58,367 million USD. A partial recovery occurred in 2024 with an increase to 83,687 million USD, yet this was followed by another decline to 73,945 million USD in 2025. This pattern closely mirrors the changes in market value, reflecting diminished value creation relative to invested capital after 2021, with some improvement before a subsequent downturn.

In summary, the period under review shows strong market valuation and value addition up to 2021, after which both metrics declined significantly. Invested capital has remained more stable but saw reductions in the later years. The overall trend suggests challenges in sustaining value creation and market valuation since 2022, despite some temporary recovery attempts.

The financial data reveals several noteworthy trends over the analyzed periods. The Market Value Added (MVA), which represents the difference between the market value of a company and the capital invested by shareholders, exhibits significant fluctuations. Initially, MVA remained relatively stable around the 176 billion to 179 billion US dollar range for the first two periods, followed by a sharp decline in the third and fourth periods to values below 60 billion US dollars. There is a partial recovery in the fifth period where MVA rises to approximately 83 billion US dollars, but this is followed by a decrease again in the sixth period to around 74 billion US dollars.

Invested capital shows more stability in comparison, with values consistently around the 165 billion to 174 billion US dollar range throughout all periods. A notable slight downward trend is observable from the fourth period onward, indicating possible reductions in invested capital or divestments in the most recent periods.

The MVA spread ratio, which reflects the efficiency of invested capital in generating market value, mirrors the pattern seen in MVA. It begins above 100%, suggesting the company was generating market value well above its invested capital during the first two periods. However, this ratio sharply declines to approximately one-third (around 33% to 34%) in the middle periods, indicating a significant drop in value creation relative to invested capital. A moderate rebound occurs in the fifth period, with the ratio rising to just over 50%, before dropping again to around 45% in the sixth period.

In summary, the company experienced a strong performance in value creation relative to invested capital initially, followed by a marked decline over the middle periods. Although there is some improvement afterwards, recent figures still indicate a subdued value creation compared to the earlier years. The stability in invested capital alongside the volatility in market value added and the spread ratio suggests external factors or market perceptions may have exerted significant influence on the company's valuation during this timeframe.

Market Value Added (MVA)

The market value added shows a significant decline from 176,716 million US dollars in 2020 to 59,670 million in 2022. This decreasing trend continues with a slight further reduction to 58,367 million in 2023. There is a moderate recovery in the subsequent years, rising to 83,687 million in 2024, before another dip to 73,945 million in 2025. Overall, the MVA has experienced considerable volatility and a downward trajectory compared to the initial value.

Adjusted Revenues

Adjusted revenues show a generally upward trend across the observed periods. From 64,920 million US dollars in 2020, revenues increased steadily each year, reaching 94,454 million by 2025. The most notable growth occurred between 2021 and 2022, where revenues rose from 67,865 million to 84,532 million. This suggests consistent revenue growth despite fluctuations in market value added.

MVA Margin

The MVA margin percentage follows a pattern similar to MVA, starting high at 272.21% in 2020 and declining sharply to 70.59% by 2022. It continues to decrease to 65.59% in 2023 before recovering modestly to 91.7% in 2024 and then declining again to 78.29% in 2025. These fluctuations indicate variations in value creation relative to revenues, with a notable reduction in efficiency or market perception in the middle years, followed by partial recovery.

Overall Analysis

The financial data indicates a company experiencing significant challenges in value creation as reflected by the MVA and MVA margin, particularly from 2020 to 2023. Despite these challenges, revenues have shown consistent growth, implying strong operational performance and sales increases. The disconnect between rising revenues and fluctuating market value added may reflect market uncertainties, external factors impacting valuation, or shifts in investor expectations. The partial recovery in MVA and MVA margin towards 2024 suggests some improvement in market confidence or value realization, though levels remain below those observed at the beginning of the period.