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
Home Depot Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Home Depot Inc. market (fair) value less invested capital. | Home Depot Inc. MVA increased from 2023 to 2024 but then slightly decreased from 2024 to 2025. |
MVA Spread Ratio
Home Depot Inc., MVA spread ratio calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 334,271) | 369,596) | 286,159) | 329,176) | 315,578) | 200,802) | |
| Invested capital2 | 72,841) | 55,884) | 55,111) | 48,299) | 49,973) | 36,678) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 458.91% | 661.36% | 519.24% | 681.54% | 631.50% | 547.47% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Amazon.com Inc. | — | 578.29% | 487.84% | 342.01% | 728.57% | 1,053.43% | |
| Lowe’s Cos. Inc. | 531.47% | 603.38% | 500.68% | 587.76% | 457.91% | 186.58% | |
| TJX Cos. Inc. | — | 480.00% | 393.67% | 333.18% | 327.36% | 261.07% | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 334,271 ÷ 72,841 = 458.91%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | Home Depot Inc. MVA spread ratio improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025. |
MVA Margin
Home Depot Inc., MVA margin calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 334,271) | 369,596) | 286,159) | 329,176) | 315,578) | 200,802) | |
| Net sales | 159,514) | 152,669) | 157,403) | 151,157) | 132,110) | 110,225) | |
| Add: Increase (decrease) in deferred revenue | (152) | (302) | (532) | 773) | 707) | 334) | |
| Adjusted net sales | 159,362) | 152,367) | 156,871) | 151,930) | 132,817) | 110,559) | |
| Performance Ratio | |||||||
| MVA margin2 | 209.76% | 242.57% | 182.42% | 216.66% | 237.60% | 181.62% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Amazon.com Inc. | — | 338.36% | 274.96% | 178.50% | 312.93% | 408.23% | |
| Lowe’s Cos. Inc. | 166.91% | 181.37% | 127.78% | 159.89% | 145.00% | 69.10% | |
| TJX Cos. Inc. | — | 186.85% | 160.74% | 135.17% | 227.93% | 116.99% | |
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 334,271 ÷ 159,362 = 209.76%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | Home Depot Inc. MVA margin ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level. |