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.
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- Income Statement
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
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MVA
Union Pacific Corp., 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 period under review demonstrates fluctuations in market valuation and invested capital, resulting in corresponding changes in market value added. Overall, the market value of the company exhibits volatility, while invested capital consistently increases. Market value added follows a similar pattern of fluctuation, generally tracking the changes in market valuation.
- Market Value
- The market value experienced a significant decrease from 2021 to 2022, falling from US$188,991 million to US$155,425 million. A subsequent recovery occurred in 2023, with the market value rising to US$182,193 million. However, this was followed by a decline in 2024 to US$172,837 million, and a modest increase in 2025 to US$177,161 million. This suggests sensitivity to external market conditions or company-specific factors.
- Invested Capital
- Invested capital shows a consistent upward trend throughout the period. Beginning at US$58,241 million in 2021, it increased to US$59,751 million in 2022, US$61,524 million in 2023, US$62,044 million in 2024, and reached US$63,642 million in 2025. This indicates a continuous reinvestment in the business or acquisition of new assets.
- Market Value Added
- Market value added mirrored the fluctuations in market value. It decreased substantially from US$130,750 million in 2021 to US$95,674 million in 2022, coinciding with the drop in market value. MVA then increased to US$120,669 million in 2023, before decreasing to US$110,793 million in 2024. A slight increase to US$113,519 million was observed in 2025. The correlation between MVA and market value is strong, suggesting that changes in investor perception significantly impact the metric.
The consistent growth in invested capital, contrasted with the fluctuating market value, suggests that the efficiency of capital allocation may be a key driver of MVA performance. Further investigation into the factors influencing market valuation is warranted to understand the observed volatility.
MVA Spread Ratio
Union Pacific Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the five-year period. Initially, a decrease in MVA was observed from 2021 to 2022, followed by a recovery and subsequent stabilization. Invested capital demonstrated a consistent upward trend throughout the period. The MVA spread ratio, calculated from these figures, reflects the relationship between wealth created and capital invested, and showed a similar pattern to MVA, with a decline initially, then a leveling off.
- Market Value Added (MVA)
- MVA began at US$130,750 million in 2021, declining to US$95,674 million in 2022. A substantial increase was then recorded in 2023, reaching US$120,669 million. Subsequent years saw more modest changes, with MVA at US$110,793 million in 2024 and US$113,519 million in 2025. This suggests a period of value destruction in 2022, followed by value creation, and then a period of relative stability.
- Invested Capital
- Invested capital increased steadily throughout the observed period. Starting at US$58,241 million in 2021, it rose to US$59,751 million in 2022, US$61,524 million in 2023, US$62,044 million in 2024, and finally reached US$63,642 million in 2025. This consistent growth indicates ongoing investment in the business.
- MVA Spread Ratio
- The MVA spread ratio, representing MVA as a percentage of invested capital, decreased significantly from 224.50% in 2021 to 160.12% in 2022, mirroring the decline in MVA. The ratio then increased to 196.13% in 2023, before settling at 178.57% in 2024 and 178.37% in 2025. The stabilization of the ratio in the latter two years suggests that the rate of MVA growth is aligning with the rate of invested capital growth.
The observed trends indicate a period of initial underperformance in 2022, followed by a recovery in value creation. While invested capital continues to grow, the MVA spread ratio suggests that the efficiency of capital deployment, as measured by MVA relative to invested capital, has stabilized in recent years.
MVA Margin
Union Pacific Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Operating revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
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 ÷ Operating revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited fluctuations over the five-year period. Initially, a substantial decrease in MVA was observed, followed by a recovery and subsequent stabilization. Operating revenues demonstrated a generally upward trajectory, though with a slight dip in the third year. The MVA margin, calculated as a percentage of operating revenues, mirrored the MVA trend, showing significant volatility before reaching a relatively stable level.
- Market Value Added (MVA)
- The MVA began at US$130,750 million in 2021, declining significantly to US$95,674 million in 2022. A recovery was then noted in 2023, with MVA increasing to US$120,669 million. This upward momentum slowed in 2024, with a decrease to US$110,793 million, before a modest increase to US$113,519 million in 2025. The overall trend suggests a period of value destruction followed by stabilization and partial recovery.
- Operating Revenues
- Operating revenues increased from US$21,804 million in 2021 to US$24,875 million in 2022, representing substantial growth. However, revenues experienced a slight decrease in 2023, falling to US$24,119 million. Subsequent years saw modest increases, reaching US$24,250 million in 2024 and US$24,510 million in 2025. The trend indicates consistent revenue generation with a minor, temporary disruption.
- MVA Margin
- The MVA margin experienced the most dramatic fluctuations. It started at a high of 599.66% in 2021, then decreased substantially to 384.62% in 2022, coinciding with the decline in MVA. The margin recovered to 500.31% in 2023, followed by a decrease to 456.88% in 2024. The final year, 2025, showed a slight increase to 463.15%. The MVA margin’s volatility suggests a strong sensitivity to changes in MVA relative to operating revenues.
The relationship between MVA and operating revenues indicates that while revenues have been relatively stable, the market’s valuation of the company’s future cash flows, as reflected in MVA, has been more dynamic. The stabilization of both MVA and the MVA margin in the later years suggests a potential leveling off of market expectations.