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
Amgen Inc. pages available for free this week:
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Amgen Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Amgen Inc., MVA calculation
US$ 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 »
The market value of the company demonstrates a generally increasing trend over the five-year period, although with some fluctuation. Invested capital also increased significantly initially, but shows a decline in the later years. Consequently, market value added (MVA) exhibits a consistent upward trajectory, indicating increasing shareholder wealth creation.
- Market Value
- The market value began at US$162,550 million in 2021, experienced a slight decrease to US$162,173 million in 2022, and then rose substantially to US$219,464 million in 2023. A moderate decline to US$213,893 million occurred in 2024, followed by a further increase to US$252,649 million in 2025. This suggests positive market perception, with some volatility.
- Invested Capital
- Invested capital decreased slightly from US$40,247 million in 2021 to US$39,722 million in 2022. A significant increase was then observed, reaching US$69,976 million in 2023. However, invested capital then decreased to US$63,169 million in 2024 and continued to decline to US$58,618 million in 2025. This pattern could indicate strategic capital allocation decisions, potentially including divestitures or reduced investment in certain areas.
- Market Value Added (MVA)
- MVA shows a consistent upward trend throughout the period. Starting at US$122,303 million in 2021, it increased to US$122,451 million in 2022, then to US$149,488 million in 2023. Further growth was seen in 2024, reaching US$150,724 million, and culminating in US$194,031 million in 2025. The continuous increase in MVA suggests that the company is generating returns exceeding its cost of capital, effectively creating value for its investors.
The divergence between the market value and invested capital trends, particularly in the later years, warrants further investigation. While market value continues to rise, the decreasing invested capital suggests increased efficiency in capital utilization or a shift in business strategy. The consistent growth in MVA confirms the company’s ability to generate shareholder value despite these changes.
MVA Spread Ratio
Amgen Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific 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 positive trajectory over the five-year period. Initial values were relatively stable between 2021 and 2022, followed by more substantial increases in subsequent years. Invested capital demonstrated a more volatile pattern, initially decreasing before experiencing a significant rise and then a subsequent decline. The MVA spread ratio, calculated as MVA divided by Invested Capital, fluctuated considerably throughout the period.
- Market Value Added (MVA)
- MVA began at US$122,303 million in 2021 and experienced a modest increase to US$122,451 million in 2022. A more pronounced increase was observed in 2023, reaching US$149,488 million, and continued into 2024 with a value of US$150,724 million. The most significant growth occurred between 2024 and 2025, with MVA reaching US$194,031 million. This indicates increasing investor confidence or improved operational performance contributing to value creation.
- Invested Capital
- Invested capital decreased from US$40,247 million in 2021 to US$39,722 million in 2022. A substantial increase followed in 2023, reaching US$69,976 million. However, this was followed by a decrease in 2024 to US$63,169 million, and a further decrease in 2025 to US$58,618 million. This pattern suggests potential shifts in capital allocation strategies, significant investments followed by potential divestitures or asset write-downs, or changes in the cost of capital.
- MVA Spread Ratio
- The MVA spread ratio began at 303.88% in 2021 and increased slightly to 308.27% in 2022. A substantial decrease was observed in 2023, falling to 213.63%. The ratio partially recovered in 2024, reaching 238.60%, before increasing significantly to 331.01% in 2025. The fluctuations in this ratio are directly influenced by the combined trends in MVA and Invested Capital. The increase in 2025 suggests that value creation (MVA) is growing at a faster rate than the capital employed.
The divergence between the trends in MVA and Invested Capital, particularly in the later years, is noteworthy. While MVA consistently increased, Invested Capital experienced a peak in 2023 followed by declines. This suggests increasing efficiency in value creation relative to capital employed, or a shift towards less capital-intensive strategies.
MVA Margin
Amgen Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Product sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific 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 ÷ Product sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited a generally positive trajectory over the five-year period. Initial values were relatively stable between 2021 and 2022, followed by more substantial increases in subsequent years. Product sales also demonstrated consistent growth throughout the period.
- Market Value Added (MVA)
- The MVA began at US$122,303 million in 2021 and experienced a modest increase to US$122,451 million in 2022. A significant rise was then observed, with MVA reaching US$149,488 million in 2023 and further increasing to US$150,724 million in 2024. The most substantial growth occurred between 2024 and 2025, with MVA culminating at US$194,031 million. This indicates increasing investor confidence and value creation over time.
- Product Sales
- Product sales showed a consistent upward trend, moving from US$24,297 million in 2021 to US$24,801 million in 2022. Growth continued with sales reaching US$26,910 million in 2023, US$32,026 million in 2024, and ultimately US$35,148 million in 2025. This consistent revenue growth likely contributed to the overall increase in MVA.
- MVA Margin
- The MVA margin fluctuated over the period. It started at 503.37% in 2021, decreased slightly to 493.74% in 2022, and then rose significantly to 555.51% in 2023. A decrease was noted in 2024, with the margin falling to 470.63%, before recovering to 552.04% in 2025. The margin’s volatility suggests that the rate of MVA growth relative to product sales varied, potentially influenced by factors beyond revenue generation, such as cost of capital or investor expectations. Despite the fluctuation, the margin remained substantially high throughout the period.
Overall, the observed trends suggest a positive relationship between product sales and market value added, with the MVA margin indicating a strong ability to generate value relative to sales. The substantial increase in MVA in 2025, coupled with the high MVA margin, warrants further investigation into the specific drivers of this performance.