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: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2012
- Current Ratio since 2012
- Price to Earnings (P/E) since 2012
- Analysis of Revenues
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MVA
AbbVie Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of AbbVie
- The market value shows a general upward trend over the observed period. Starting at approximately $282.9 billion at the end of 2020, it increased to $339.2 billion in 2021. There was a slight decline in 2022 to about $326.4 billion; however, this was followed by sustained growth in subsequent years, reaching approximately $367.6 billion in 2023 and further rising to $404.0 billion by the end of 2024.
- Invested capital
- Invested capital demonstrated a consistent decline from the end of 2020 through 2023. It decreased from about $103.7 billion in 2020 to $68.2 billion in 2023. A marginal recovery appears in 2024, with invested capital rising slightly to $69.3 billion; nonetheless, the overall trend remains downward throughout the period.
- Market value added (MVA)
- Market value added exhibited strong growth across the timeframe. Starting at around $179.1 billion at the end of 2020, it increased significantly to $243.3 billion in 2021. The growth continued more moderately in 2022 with an MVA of approximately $244.3 billion. Subsequently, there was a marked increase in 2023 to nearly $299.4 billion, and further expansion in 2024 to approximately $334.7 billion. This indicates increasing shareholder value beyond the amount of invested capital.
- Overall insights
- The data show a robust increase in market value and market value added over the five-year span, despite a contraction in invested capital. The decline in invested capital suggests improved efficiency or divestment strategies, while the market’s valuation reflects positive expectations or performance improvements. The discrepancy between declining capital and rising market value added indicates effective value creation and possibly enhanced profitability or growth prospects as perceived by the market participants.
MVA Spread Ratio
AbbVie Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Amgen 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data over the observed five-year period exhibits several notable trends related to market value added, invested capital, and the MVA spread ratio.
- Market Value Added (MVA)
- The Market Value Added shows a consistent upward trend throughout the period. It increased from US$179,132 million at the end of 2020 to US$334,701 million by the end of 2024. This represents a substantial growth of approximately 87% over five years, with the most significant increments occurring from 2022 onwards, indicating positive market perceptions and value creation over time.
- Invested Capital
- Invested capital displays a declining trend initially, decreasing from US$103,725 million in 2020 to a low of US$68,204 million in 2023. A slight rebound is seen in 2024 with an invested capital of US$69,263 million. Overall, there is a roughly 33% reduction in invested capital from the start to the end of the period. This reduction could suggest improved capital efficiency or divestment of assets.
- MVA Spread Ratio
- The MVA spread ratio has shown a pronounced increase over the five years, starting at 172.7% in 2020 and reaching 483.23% by 2024. This indicates a growing market premium on the invested capital, reflecting enhanced shareholder value generation relative to the capital invested. The accelerating rise in this ratio from 2022 onwards aligns with the observed surge in MVA and the contraction of invested capital.
In summary, the data reveals a firm enhancing its market value significantly while managing to reduce invested capital, leading to increased efficiency and substantial improvement in value creation metrics. The upward movement in the MVA spread ratio corroborates a strong market confidence and superior return on invested capital across the timeline.
MVA Margin
AbbVie Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Amgen 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added has shown a consistent upward trend over the five-year period. Starting at 179,132 million US dollars in 2020, it increased to 243,295 million in 2021 and remained relatively stable with a slight increase to 244,256 million in 2022. Subsequently, there was a more substantial rise to 299,389 million in 2023, followed by further growth reaching 334,701 million in 2024. This indicates a strengthening market valuation and investor confidence over time.
- Net Revenues
- Net revenues experienced growth between 2020 and 2022, rising from 45,804 million to 58,054 million US dollars. However, a dip occurred in 2023, with revenues declining to 54,318 million, before recovering slightly to 56,334 million in 2024. Overall, despite some fluctuation, the revenue trend shows moderate growth, with a noticeable temporary downturn in 2023.
- MVA Margin
- The MVA margin, expressed as a percentage, reflects the relationship between market value added and net revenues. The margin increased steadily from 391.08% in 2020 to 432.93% in 2021. There was a marginal decline to 420.74% in 2022, followed by a significant increase to 551.18% in 2023 and an even higher level of 594.14% in 2024. This suggests improved efficiency or enhanced market valuation relative to revenue, especially in the last two years analyzed.