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
Union Pacific Corp., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Union Pacific Corp. market (fair) value less invested capital. | Union Pacific Corp. MVA decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
MVA Spread Ratio
Union Pacific Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 120,669) | 95,674) | 130,750) | 111,883) | 98,660) | |
| Invested capital2 | 61,524) | 59,751) | 58,241) | 58,340) | 57,204) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 196.13% | 160.12% | 224.50% | 191.78% | 172.47% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | 43.85% | 39.69% | 83.76% | 39.69% | 45.89% | |
| Uber Technologies Inc. | 1,004.48% | 372.72% | 331.50% | 420.06% | 206.61% | |
| United Parcel Service Inc. | 230.94% | 287.08% | 373.64% | 415.72% | 232.28% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 120,669 ÷ 61,524 = 196.13%
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. | Union Pacific Corp. MVA spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
MVA Margin
Union Pacific Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 120,669) | 95,674) | 130,750) | 111,883) | 98,660) | |
| Operating revenues | 24,119) | 24,875) | 21,804) | 19,533) | 21,708) | |
| Performance Ratio | ||||||
| MVA margin2 | 500.31% | 384.62% | 599.66% | 572.79% | 454.49% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | 33.82% | 28.21% | 64.08% | 33.00% | 34.92% | |
| Uber Technologies Inc. | 422.20% | 191.05% | 305.35% | 793.36% | 298.93% | |
| United Parcel Service Inc. | 115.42% | 128.12% | 170.51% | 162.99% | 113.97% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Operating revenues
= 100 × 120,669 ÷ 24,119 = 500.31%
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. | Union Pacific Corp. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |