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
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Analysis of Debt
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MVA
SLB N.V., 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 »
The market value of the company exhibited volatility over the five-year period. Initial growth was followed by declines and a subsequent recovery. Invested capital consistently increased throughout the period, indicating ongoing investment in the business. Market value added (MVA) mirrored the fluctuations in market value, demonstrating a strong correlation between shareholder perception and the company’s ability to generate value beyond its cost of capital.
- Market Value Trend
- The market value increased significantly from $70,378 million in 2021 to $90,682 million in 2022, representing a substantial gain. However, this was followed by a decrease to $85,967 million in 2023 and a more pronounced decline to $70,605 million in 2024. A partial recovery was observed in 2025, with the market value rising to $85,701 million. This pattern suggests sensitivity to external factors or company-specific events impacting investor confidence.
- Invested Capital Trend
- Invested capital demonstrated a consistent upward trend throughout the period, increasing from $32,896 million in 2021 to $44,371 million in 2025. This indicates a continuous commitment to capital deployment, potentially through acquisitions, research and development, or expansion of operations. The consistent increase suggests a long-term growth strategy.
- Market Value Added (MVA) Trend
- MVA peaked in 2022 at $56,751 million, coinciding with the highest market value. A subsequent decline was observed in 2023 ($48,191 million) and a more substantial decrease in 2024 ($31,222 million), mirroring the market value trend. The increase in 2025 to $41,330 million suggests a partial restoration of value creation, but remained below the 2022 peak. The correlation between MVA and market value highlights the importance of market perception in determining the company’s value creation success.
The divergence between the increasing invested capital and the fluctuating MVA suggests that the returns on invested capital were not consistent across the period. While the company continued to invest, its ability to translate those investments into shareholder value varied, as reflected in the MVA figures. Further investigation into the factors driving these fluctuations would be beneficial.
MVA Spread Ratio
SLB N.V., MVA spread ratio calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
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 × ÷ =
The Market Value Added (MVA) exhibited fluctuating performance over the five-year period. Initial growth was followed by a decline and subsequent partial recovery. Invested Capital consistently increased throughout the period. The MVA spread ratio, reflecting the relationship between MVA and Invested Capital, demonstrated significant volatility.
- Market Value Added (MVA)
- MVA increased substantially from $37,482 million in 2021 to $56,751 million in 2022, representing a significant gain. However, a decrease was observed in 2023, with MVA falling to $48,191 million. This downward trend continued into 2024, reaching a low of $31,222 million before partially recovering to $41,330 million in 2025. The 2024 value represents the lowest MVA observed within the analyzed timeframe.
- Invested Capital
- Invested Capital showed a consistent upward trend throughout the period. It rose from $32,896 million in 2021 to $44,371 million in 2025. The increases were incremental each year, indicating a steady commitment of capital to the business.
- MVA Spread Ratio
- The MVA spread ratio peaked in 2022 at 167.25%, coinciding with the highest MVA value. A substantial decline was then recorded in 2023 to 127.57%, followed by a more pronounced decrease to 79.28% in 2024, mirroring the decline in MVA. The ratio experienced a partial recovery in 2025, increasing to 93.15%, but remained below the 2022 peak. The ratio’s volatility suggests a changing relationship between value creation and capital employed.
The divergence between the increasing Invested Capital and the fluctuating MVA suggests a potential shift in the efficiency of capital allocation. While capital investment continued, the corresponding value creation, as measured by MVA, did not consistently follow suit. The MVA spread ratio highlights this dynamic, demonstrating a decreasing return on invested capital in 2023 and 2024 before a slight improvement in 2025.
MVA Margin
SLB N.V., MVA margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
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 ÷ Revenue
= 100 × ÷ =
Market value added (MVA) exhibited significant fluctuation between 2021 and 2025. While initially increasing, MVA experienced a decline before showing signs of recovery. Revenue demonstrated a consistent upward trajectory for the majority of the period, though growth moderated in the final year. The MVA margin, calculated as MVA relative to revenue, mirrored the volatility observed in MVA, displaying substantial variation over the five-year period.
- Market Value Added (MVA)
- The MVA began at US$37,482 million in 2021, increasing substantially to US$56,751 million in 2022. A subsequent decrease was observed in 2023, with MVA falling to US$48,191 million. This downward trend continued into 2024, reaching a low of US$31,222 million. By 2025, MVA partially recovered to US$41,330 million, though it remained below the 2022 peak.
- Revenue
- Revenue increased steadily from US$22,929 million in 2021 to US$33,135 million in 2023. Growth continued in 2024, reaching US$36,289 million. However, revenue experienced a slight decline in 2025, settling at US$35,708 million. Despite this final-year decrease, the overall trend indicates positive revenue growth throughout most of the analyzed period.
- MVA Margin
- The MVA margin peaked in 2022 at 202.02%, significantly higher than the 163.47% recorded in 2021. The margin then decreased considerably to 145.44% in 2023, and further to 86.04% in 2024, reflecting the decline in MVA relative to revenue. A partial recovery was seen in 2025, with the MVA margin increasing to 115.74%, though it did not reach the levels observed in 2021 or 2022. The fluctuations in the MVA margin suggest a changing relationship between value creation and revenue generation.
The divergence between revenue and MVA, particularly evident in 2023 and 2024, suggests factors beyond revenue growth are influencing the company’s market value. Further investigation into cost structures, investment decisions, and market perceptions would be necessary to fully understand these dynamics.