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:
- Income Statement
- Statement of Comprehensive Income
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Debt to Equity 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 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: 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 observed period. Initially declining from 2021 to 2023, it showed a modest increase in 2024 before experiencing a substantial rise in 2025. Invested capital demonstrated a more stable pattern, with a slight increase in 2022, followed by a decrease in 2023 and 2024, and a significant increase in 2025. Market value added mirrored the trend of the market value, decreasing from 2021 to 2023, increasing in 2024, and then experiencing a considerable surge in 2025.
- Market Value Trend
- The market value decreased from US$83,439 million in 2021 to US$76,077 million in 2023, representing a cumulative decline of approximately 8.8%. A slight recovery occurred in 2024, with the market value reaching US$77,479 million. However, the most significant change was observed in 2025, where the market value increased substantially to US$112,722 million, a rise of over 45% from the previous year.
- Invested Capital Trend
- Invested capital increased from US$35,043 million in 2021 to US$36,035 million in 2022, a growth of approximately 2.8%. It then decreased to US$35,126 million in 2023 and further to US$33,889 million in 2024. Similar to the market value, invested capital experienced a notable increase in 2025, reaching US$40,693 million.
- Market Value Added (MVA) Trend
- The MVA followed a similar trajectory to the market value. It decreased from US$48,396 million in 2021 to US$40,951 million in 2023, representing a decline of approximately 15.3%. A modest increase was observed in 2024, with MVA reaching US$43,590 million. The most substantial change occurred in 2025, with MVA increasing significantly to US$72,029 million, a rise of approximately 65.4% from the prior year.
The substantial increases in both market value and MVA in 2025, coupled with the corresponding increase in invested capital, suggest a positive shift in investor perception and potentially improved operational performance or market conditions during that period. The declines observed in the earlier years warrant further investigation to understand the underlying factors contributing to those decreases.
MVA Spread Ratio
Freeport-McMoRan Inc., MVA spread ratio calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 between 2021 and 2025. While Invested Capital remained relatively stable for the majority of the period, the MVA spread ratio demonstrated a distinct pattern of initial decline followed by substantial improvement.
- Market Value Added (MVA)
- The MVA began at US$48,396 million in 2021, then decreased to US$44,211 million in 2022 and further to US$40,951 million in 2023. A modest recovery was observed in 2024, with MVA reaching US$43,590 million, before a significant increase to US$72,029 million in 2025. This suggests a strengthening of shareholder value creation in the most recent year.
- Invested Capital
- Invested Capital showed a slight increase from US$35,043 million in 2021 to US$36,035 million in 2022. It then experienced a minor decrease to US$35,126 million in 2023, followed by a more noticeable decline to US$33,889 million in 2024. A substantial increase was recorded in 2025, reaching US$40,693 million. The fluctuations in invested capital appear less pronounced than those observed in MVA.
- MVA Spread Ratio
- The MVA spread ratio decreased consistently from 138.11% in 2021 to 116.58% in 2023, indicating a diminishing return on invested capital relative to MVA. A partial recovery occurred in 2024, with the ratio rising to 128.63%. However, the most significant change was observed in 2025, where the ratio surged to 177.01%. This substantial increase suggests a considerably improved efficiency in generating value from the invested capital base during that year. The ratio’s movement suggests a decoupling of MVA and invested capital, with the latter having less influence on the former in 2025.
The considerable increase in both MVA and the MVA spread ratio in 2025 warrants further investigation to determine the underlying drivers of this performance. The earlier decline in the MVA spread ratio, followed by its dramatic recovery, highlights the dynamic relationship between value creation and capital deployment.
MVA Margin
Freeport-McMoRan Inc., MVA margin calculation
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 ÷ Adjusted revenues
= 100 × ÷ =
The Market Value Added (MVA) exhibited fluctuating performance between 2021 and 2025. While MVA initially decreased over a three-year period, it experienced a substantial increase in the final year of the observed timeframe. Adjusted revenues demonstrated a more stable, albeit modest, growth pattern.
- Market Value Added (MVA)
- The MVA began at US$48,396 million in 2021, declining to US$40,951 million by 2023. A recovery was noted in 2024, with MVA reaching US$43,590 million, before a significant surge to US$72,029 million in 2025. This final year represents the highest MVA value within the analyzed period.
- Adjusted Revenues
- Adjusted revenues remained relatively consistent between 2021 and 2023, fluctuating around US$22.7 to US$22.9 billion. A noticeable increase occurred in 2024, reaching US$25.385 billion, and continued into 2025, with revenues totaling US$25.930 billion. The growth in adjusted revenues appears to accelerate in the later years.
- MVA Margin
- The MVA margin followed a declining trend from 210.68% in 2021 to 171.72% in 2024. This indicates a decreasing proportion of MVA generated per dollar of adjusted revenue. However, the MVA margin experienced a dramatic increase in 2025, reaching 277.78%. This substantial rise suggests a significantly improved efficiency in generating market value from revenues in that year.
The divergence between the declining MVA margin from 2021 to 2024 and the substantial increase in 2025 warrants further investigation. While revenues increased, the disproportionate rise in MVA margin suggests factors beyond revenue growth significantly impacted value creation in 2025. The overall trend indicates a period of value erosion followed by a strong recovery and enhanced value generation.