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.
MVA
General Motors Co., 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 five-year period. Initially decreasing from 2021 to 2022, it showed a slight recovery in 2023 before increasing more substantially in 2024 and 2025. Invested capital consistently increased throughout the period, though the rate of increase slowed in 2025. Market value added (MVA) demonstrated a significant shift from positive to negative values, ultimately returning to a positive value by the end of the period.
- Market Value Trend
- The market value decreased by approximately 16.7% from $190.742 billion in 2021 to $158.960 billion in 2022. A modest increase of 2.3% was observed in 2023, followed by a more pronounced increase of 8.4% in 2024, and a further increase of 17.1% in 2025, reaching $206.784 billion. This suggests a strengthening investor confidence towards the end of the analyzed period.
- Invested Capital Trend
- Invested capital increased steadily from $167.086 billion in 2021 to $172.128 billion in 2022, representing a 2.9% increase. The growth continued with increases to $182.260 billion in 2023 and $194.168 billion in 2024, representing growth rates of 5.8% and 6.5% respectively. The rate of growth slowed considerably in 2025, with invested capital reaching $195.877 billion, a growth rate of only 1.0%.
- Market Value Added (MVA) Analysis
- In 2021, MVA stood at $23.656 billion, indicating value creation for investors. However, MVA turned negative in 2022, reaching -$13.168 billion, and continued to decline to -$19.527 billion in 2023 and -$17.696 billion in 2024. A significant turnaround occurred in 2025, with MVA becoming positive again at $10.907 billion. This suggests that the company’s value creation, relative to its invested capital, improved substantially in the final year of the period.
The divergence between the increasing invested capital and the initially declining, then recovering, MVA suggests a period of inefficient capital allocation followed by improved performance. The positive MVA in 2025 indicates that the company’s market value grew beyond the capital invested, signaling improved shareholder value creation.
MVA Spread Ratio
General Motors Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 10,907) | (17,696) | (19,527) | (13,168) | 23,656) | |
| Invested capital2 | 195,877) | 194,168) | 182,260) | 172,128) | 167,086) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 5.57% | -9.11% | -10.71% | -7.65% | 14.16% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Ford Motor Co. | — | -1.53% | 7.92% | 4.13% | 17.80% | |
| Tesla Inc. | — | 1,797.21% | 919.85% | 1,006.95% | 2,259.91% | |
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 × 10,907 ÷ 195,877 = 5.57%
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations over the five-year period. Initially positive, it transitioned to negative values before recovering in the final year. This movement is reflected in the MVA spread ratio, which demonstrates a corresponding pattern of decline and subsequent improvement.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$23,656 million. A substantial decline followed, resulting in negative MVA values of US$-13,168 million in 2022 and US$-19,527 million in 2023. The negative trend continued, albeit at a slower pace, with an MVA of US$-17,696 million in 2024. A notable recovery occurred in 2025, with the MVA turning positive again, reaching US$10,907 million.
- Invested Capital
- Invested capital consistently increased throughout the period, rising from US$167,086 million in 2021 to US$195,877 million in 2025. This growth was relatively steady, with incremental increases each year, suggesting ongoing investment in the business.
- MVA Spread Ratio
- The MVA spread ratio mirrored the trend in MVA. It began at 14.16% in 2021, then decreased to -7.65% in 2022, further declining to -10.71% in 2023 and -9.11% in 2024. A significant positive shift occurred in 2025, with the ratio reaching 5.57%. The ratio’s movement indicates the degree to which value creation, as measured by MVA, relates to the capital invested in the business. The negative values suggest that, for a period, the market value created was less than the capital employed.
The divergence between the increasing invested capital and the fluctuating MVA suggests a period where returns on investment were insufficient to generate corresponding market value. The recovery in MVA and the MVA spread ratio in 2025 indicate a potential improvement in value creation relative to invested capital.
MVA Margin
General Motors Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 10,907) | (17,696) | (19,527) | (13,168) | 23,656) | |
| Automotive net sales and revenue | 167,971) | 171,606) | 157,658) | 143,975) | 113,590) | |
| Add: Increase (decrease) in deferred revenue | 1,737) | 1,490) | 1,780) | 570) | (376) | |
| Adjusted automotive net sales and revenue | 169,708) | 173,096) | 159,438) | 144,545) | 113,214) | |
| Performance Ratio | ||||||
| MVA margin2 | 6.43% | -10.22% | -12.25% | -9.11% | 20.89% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Ford Motor Co. | — | -1.65% | 8.29% | 4.54% | 22.52% | |
| Tesla Inc. | — | 1,237.94% | 556.13% | 605.55% | 1,666.45% | |
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 automotive net sales and revenue
= 100 × 10,907 ÷ 169,708 = 6.43%
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations between 2021 and 2025. Initially positive, MVA transitioned to negative values before recovering in the final period. This movement is closely related to the company’s adjusted automotive net sales and revenue, as reflected in the MVA margin.
- Market Value Added (MVA)
- In 2021, the MVA stood at US$23,656 million. A substantial decline occurred in 2022, resulting in a negative MVA of US$-13,168 million. This negative trend continued into 2023, with MVA reaching US$-19,527 million, representing the lowest value within the observed period. A slight improvement was noted in 2024, with MVA at US$-17,696 million, before a significant recovery in 2025, bringing MVA to US$10,907 million.
- Adjusted Automotive Net Sales and Revenue
- Adjusted automotive net sales and revenue demonstrated a consistent upward trend from 2021 to 2024. Revenue increased from US$113,214 million in 2021 to US$173,096 million in 2024. However, a slight decrease was observed in 2025, with revenue settling at US$169,708 million. Despite this final-year reduction, overall revenue remained considerably higher than in 2021.
- MVA Margin
- The MVA margin mirrored the fluctuations in MVA. In 2021, the MVA margin was 20.89%. It then experienced a sharp decline, reaching -9.11% in 2022. The margin continued to decrease in 2023, hitting -12.25%, its lowest point. A modest recovery occurred in 2024, with the margin at -10.22%. Finally, the MVA margin showed a substantial improvement in 2025, reaching 6.43%, indicating a positive correlation between revenue and value creation during that period.
The negative MVA and MVA margins in 2022, 2023, and 2024 suggest that the company’s returns were not sufficient to cover its cost of capital during those years. The positive MVA and margin in 2025 indicate a reversal of this trend, suggesting improved value creation relative to capital employed. The slight dip in revenue in 2025 did not prevent the MVA from becoming positive, suggesting improved efficiency or profitability alongside revenue.