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: 2024-12-31), 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).
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 increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
MVA Spread Ratio
Union Pacific Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 110,793) | 120,669) | 95,674) | 130,750) | 111,883) | |
| Invested capital2 | 62,044) | 61,524) | 59,751) | 58,241) | 58,340) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 178.57% | 196.13% | 160.12% | 224.50% | 191.78% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | 56.50% | 43.85% | 39.69% | 83.76% | 39.69% | |
| Uber Technologies Inc. | 1,005.70% | 1,007.53% | 372.72% | 331.50% | 420.06% | |
| United Airlines Holdings Inc. | — | -6.92% | 2.19% | 9.76% | 10.25% | |
| United Parcel Service Inc. | — | 230.94% | 287.08% | 373.64% | 415.72% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 110,793 ÷ 62,044 = 178.57%
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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
MVA Margin
Union Pacific Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 110,793) | 120,669) | 95,674) | 130,750) | 111,883) | |
| Operating revenues | 24,250) | 24,119) | 24,875) | 21,804) | 19,533) | |
| Performance Ratio | ||||||
| MVA margin2 | 456.88% | 500.31% | 384.62% | 599.66% | 572.79% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | 45.27% | 33.82% | 28.21% | 64.08% | 33.00% | |
| Uber Technologies Inc. | 341.51% | 423.49% | 191.05% | 305.35% | 793.36% | |
| United Airlines Holdings Inc. | — | -5.52% | 1.95% | 19.90% | 28.97% | |
| United Parcel Service Inc. | — | 115.42% | 128.12% | 170.51% | 162.99% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Operating revenues
= 100 × 110,793 ÷ 24,250 = 456.88%
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 improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |