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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- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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MVA
Gilead Sciences 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 significant fluctuation over the observed period. While increasing from 2021 to 2022, it experienced a decline in 2023 before exhibiting substantial growth in both 2024 and 2025. Invested capital consistently decreased throughout the period, though at a relatively moderate pace.
- Market Value
- The market value increased from US$104,920 million in 2021 to US$125,424 million in 2022, representing a growth of approximately 19.5%. A subsequent decrease to US$113,669 million was observed in 2023. However, the market value rebounded strongly, reaching US$167,118 million in 2024 and further increasing to US$203,903 million in 2025. This indicates increasing investor confidence or positive market perception in the later years of the period.
- Invested Capital
- Invested capital decreased from US$47,782 million in 2021 to US$42,812 million in 2025. The decline was relatively consistent year-over-year, with decreases ranging from approximately 1.3% to 4.6% annually. This suggests a potential strategy of reducing capital intensity or returning capital to shareholders.
- Market Value Added (MVA)
- Market value added exhibited a pattern mirroring that of the market value. It rose from US$57,138 million in 2021 to US$79,859 million in 2022, decreased to US$67,845 million in 2023, and then experienced substantial growth, reaching US$122,785 million in 2024 and US$161,091 million in 2025. The increasing MVA suggests that the company is generating value for its investors beyond the capital they have invested. The significant increases in 2024 and 2025 are particularly noteworthy.
The divergence between the decreasing invested capital and the increasing market value and MVA, particularly in the later years, suggests that the company is becoming more efficient in its capital allocation or that market expectations regarding future growth have increased. Further investigation into the drivers of market value and the reasons for the reduction in invested capital would be beneficial.
MVA Spread Ratio
Gilead Sciences Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||
| 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 significant fluctuations between 2021 and 2025. Initially increasing substantially, it experienced a decline before resuming a strong upward trajectory. This pattern is reflected in the MVA spread ratio, which demonstrates a corresponding increase over the period.
- Market Value Added (MVA)
- The MVA began at US$57,138 million in 2021, increasing to US$79,859 million in 2022. A decrease was then observed in 2023, with MVA falling to US$67,845 million. Subsequently, MVA rose considerably to US$122,785 million in 2024 and continued its ascent to US$161,091 million in 2025. This indicates periods of strong value creation followed by a temporary setback, ultimately culminating in substantial gains.
- Invested Capital
- Invested capital demonstrated a consistent downward trend throughout the analyzed period. Starting at US$47,782 million in 2021, it decreased to US$45,565 million in 2022, US$45,824 million in 2023, US$44,333 million in 2024, and finally reached US$42,812 million in 2025. This suggests a reduction in the capital employed by the entity over time.
- MVA Spread Ratio
- The MVA spread ratio increased significantly from 119.58% in 2021 to 175.26% in 2022, mirroring the increase in MVA. A slight decrease to 148.05% occurred in 2023, coinciding with the decline in MVA. However, the ratio experienced substantial growth in 2024, reaching 276.96%, and continued to rise sharply to 376.28% in 2025. This indicates that the entity is generating increasing value relative to its invested capital, particularly in the later years of the period. The widening spread suggests improved efficiency in capital allocation and value creation.
The divergence between the decreasing invested capital and the increasing MVA spread ratio suggests that the entity is becoming more effective at generating value with a smaller capital base. This could be due to factors such as improved operational efficiency, successful innovation, or a shift towards less capital-intensive business activities.
MVA Margin
Gilead Sciences Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Product sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| 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 significant fluctuations between 2021 and 2025. Initially, MVA increased substantially from 2021 to 2022, followed by a decrease in 2023, and then a marked increase through 2025. Product sales demonstrated relative stability over the same period, with a slight upward trend towards the end of the analyzed timeframe.
- MVA Trend
- MVA began at US$57,138 million in 2021 and rose to US$79,859 million in 2022, representing a considerable gain. A subsequent decline to US$67,845 million occurred in 2023. However, a strong recovery and acceleration were observed in 2024 and 2025, with MVA reaching US$122,785 million and US$161,091 million respectively. This suggests increasing investor confidence or expectations regarding the company’s future performance in the latter years.
- Product Sales Trend
- Product sales remained relatively consistent, fluctuating around US$27 billion between 2021 and 2023 (US$27,008 million, US$26,982 million, and US$26,934 million). A modest increase was noted in 2024 (US$28,610 million) and continued into 2025 (US$28,915 million). The stability in product sales, contrasted with the volatility in MVA, indicates that factors beyond revenue generation are significantly influencing the company’s market valuation.
- MVA Margin Trend
- The MVA margin experienced a dramatic increase throughout the period. Starting at 211.56% in 2021, it rose to 295.97% in 2022, decreased to 251.89% in 2023, and then surged to 429.17% in 2024. This upward trajectory continued into 2025, reaching 557.12%. The substantial growth in the MVA margin, despite relatively stable product sales, suggests a significant improvement in the company’s ability to generate value for its investors, potentially driven by increased efficiency, reduced costs, or changes in investor perception of risk and growth potential.
The divergence between MVA and product sales trends, coupled with the escalating MVA margin, warrants further investigation into the underlying drivers of market valuation. Factors such as research and development success, strategic acquisitions, or shifts in market sentiment could be contributing to these observed patterns.