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
Freeport-McMoRan Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Freeport-McMoRan Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Freeport-McMoRan Inc., MVA calculation
US$ 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 »
The financial data exhibits several noteworthy trends spanning the five-year period ending in 2024. The market (fair) value of the company experienced significant fluctuations, initially rising from approximately $67.7 billion in 2020 to a peak near $83.4 billion in 2021. Following this, it declined over the subsequent two years, reaching about $76.1 billion in 2023, before showing a marginal increase to approximately $77.5 billion in 2024.
Invested capital demonstrated a generally declining trend after a slight increase in the early years. It grew from roughly $32.2 billion in 2020 to a peak close to $36 billion in 2022, then fell to approximately $33.9 billion in 2024. This suggests a reduction in capital deployment or possible asset optimization during the later years.
Market value added (MVA), reflecting the difference between market value and invested capital, rose substantially from about $35.5 billion in 2020 to nearly $48.4 billion in 2021. However, it experienced a decline over the next two years, dropping to around $40.9 billion in 2023. A moderate recovery occurred in 2024, bringing MVA up to approximately $43.6 billion, indicating improved but still fluctuating value creation relative to the invested capital.
- Market (fair) value
- Shows an initial upward trend followed by a decrease and slight recovery.
- Invested capital
- Displays growth until 2022, then a downward movement indicating possible capital divestment or efficiency measures.
- Market value added (MVA)
- Increases sharply in 2021, declines over the subsequent two years, and recovers modestly in 2024, reflecting variability in the company’s value creation over invested capital.
MVA Spread Ratio
Freeport-McMoRan Inc., MVA spread ratio calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
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 × ÷ =
- Market Value Added (MVA)
- The Market Value Added showed a significant increase from 35,491 million US dollars at the end of 2020 to 48,396 million in 2021, indicating a strong market valuation improvement during that period. However, it experienced a decline to 44,211 million in 2022 and further decreased to 40,951 million in 2023. In 2024, there was a modest recovery with an increase to 43,590 million. Overall, the MVA trend shows initial growth followed by a period of decline and partial recovery.
- Invested Capital
- Invested capital displayed a gradual upward trend from 32,173 million US dollars in 2020, reaching a peak at 36,035 million in 2022. Afterward, it declined slightly to 35,126 million in 2023 and further to 33,889 million in 2024. This suggests that the company initially increased its capital investment before reducing it modestly in the most recent years.
- MVA Spread Ratio
- The MVA spread ratio, expressed as a percentage, rose sharply from 110.31% in 2020 to 138.11% in 2021, reflecting an increasing value creation relative to invested capital in that year. The ratio then decreased to 122.69% in 2022 and continued its downward trajectory to 116.58% in 2023. In 2024, the ratio improved to 128.63%. This pattern indicates fluctuating effectiveness in generating market value above the invested capital, with a notable peak in 2021 and a recovery trend in 2024.
MVA Margin
Freeport-McMoRan Inc., MVA margin calculation
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 ÷ Adjusted revenues
= 100 × ÷ =
- Market value added (MVA)
- The Market Value Added exhibited an overall increasing trend from 2020 to 2024, starting at 35,491 million USD and peaking at 48,396 million USD in 2021. However, this was followed by a decline in 2022 and 2023, reaching a low of 40,951 million USD in 2023 before a slight recovery to 43,590 million USD in 2024. This pattern indicates volatility in the market valuation over this period with a notable peak early on and partial rebound at the end.
- Adjusted revenues
- Adjusted revenues showed consistent growth throughout the analyzed period. Beginning at 14,251 million USD in 2020, revenues more than doubled by 2024, reaching 25,385 million USD. This steady upward trajectory reflects significant top-line expansion year over year, with substantial increases noted between 2020 and 2021, and continuing growth through to 2024.
- MVA margin
- The MVA margin percentage demonstrated a clear declining trend over the five-year period. Starting at a high of 249.04% in 2020, the margin progressively decreased each year to 171.72% by 2024. This decline suggests that despite growing revenues and fluctuating market value added figures, the efficiency or profitability relative to market value added has diminished consistently across these years.