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.
Paying user area
Try for free
PepsiCo Inc. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to PepsiCo Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
PepsiCo Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Fair value of debt. See details »
2 Invested capital. See details »
The information presents a five-year view of market value, invested capital, and market value added. Overall, the period exhibits fluctuations in all three metrics, with a notable decline in market value and MVA between 2022 and 2024, followed by a partial recovery in the most recent year.
- Market Value
- The market value of the company initially decreased from US$277,692 million in 2021 to US$275,107 million in 2022, and continued to decline to US$274,249 million in 2023. A significant drop occurred in 2024, reaching US$239,611 million. However, the market value rebounded in 2025, increasing to US$272,175 million, though it did not fully recover to its 2021 level.
- Invested Capital
- Invested capital remained relatively stable between 2021 and 2023, fluctuating slightly from US$69,829 million to US$75,038 million. A continued increase was observed in 2024, reaching US$76,674 million, and further growth occurred in 2025, with invested capital reaching US$83,234 million. This represents a consistent upward trend in capital employed over the latter part of the period.
- Market Value Added (MVA)
- The MVA followed a similar pattern to the market value, decreasing from US$207,863 million in 2021 to US$205,655 million in 2022, and then to US$199,211 million in 2023. The most substantial decline occurred in 2024, with MVA falling to US$162,937 million. A recovery was evident in 2025, as MVA increased to US$188,941 million, but remained below the levels seen in the earlier years of the period.
The divergence between invested capital and MVA is noteworthy. While invested capital consistently increased from 2023 onwards, the MVA experienced a substantial decline in 2024 before showing some recovery in 2025. This suggests that the returns generated from the increased capital employed were not sufficient to maintain the previous levels of value creation, at least until the final year presented. The recovery in 2025 indicates a potential improvement in the efficiency of capital allocation or a change in market perception.
MVA Spread Ratio
PepsiCo Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
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 declining trend from 2021 through 2024, before showing a partial recovery in 2025. Simultaneously, Invested Capital generally increased over the five-year period. The MVA spread ratio, which reflects the relationship between MVA and Invested Capital, mirrored the decline in MVA and subsequently increased with the MVA recovery.
- Market Value Added (MVA)
- The MVA began at US$207,863 million in 2021 and decreased to US$162,937 million in 2024, representing a cumulative decline of approximately 21.6%. A partial recovery was observed in 2025, with MVA increasing to US$188,941 million. This suggests a period of value destruction followed by some value creation, though not returning to the initial 2021 level.
- Invested Capital
- Invested Capital demonstrated an overall upward trajectory, increasing from US$69,829 million in 2021 to US$83,234 million in 2025. The increase was not linear, with a more substantial rise between 2022 and 2023 (US$5,586 million) and again between 2024 and 2025 (US$6,560 million). This indicates consistent reinvestment in the business.
- MVA Spread Ratio
- The MVA spread ratio, calculated as MVA divided by Invested Capital, decreased consistently from 297.67% in 2021 to 212.51% in 2024. This decline indicates that the MVA was growing at a slower rate than the Invested Capital, or shrinking faster. The ratio increased to 227.00% in 2025, coinciding with the partial recovery in MVA. Despite the increase, the ratio remained below the levels observed in 2021 and 2022.
The combination of decreasing MVA and increasing Invested Capital resulted in a diminishing MVA spread ratio. The 2025 figures suggest a potential stabilization, but further monitoring is required to determine if this represents a sustained trend reversal.
MVA Margin
PepsiCo Inc., MVA margin calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a fluctuating pattern over the five-year period. Initially, the MVA decreased from US$207,863 million in 2021 to US$199,211 million in 2023, before experiencing a more substantial decline to US$162,937 million in 2024. A partial recovery was then noted in 2025, with the MVA increasing to US$188,941 million.
Net revenue demonstrated consistent growth throughout the observed timeframe. Starting at US$79,474 million in 2021, it rose to US$86,392 million in 2022, and continued to increase to US$93,925 million by 2025. The rate of revenue growth appeared relatively stable year-over-year.
- MVA Margin
- The MVA margin generally decreased from 261.55% in 2021 to 177.39% in 2024. This decline suggests that the increase in market value was not keeping pace with the growth in net revenue. However, the MVA margin showed some improvement in 2025, rising to 201.16%, indicating a potential stabilization or a more efficient generation of market value relative to revenue.
The divergence between the revenue trend and the MVA trend is noteworthy. While revenue consistently increased, the MVA experienced a decline, particularly in 2024. This suggests factors beyond revenue growth, such as changes in investor expectations, cost of capital, or operational efficiency, may have significantly impacted the company’s market valuation. The partial recovery in MVA in 2025, coupled with the corresponding increase in MVA margin, warrants further investigation to determine the underlying drivers of this improvement.