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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- Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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MVA
Verizon Communications Inc., 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 entity fluctuated considerably over the five-year period. While beginning at US$422,421 million in 2021, it experienced a substantial decline to US$335,435 million in 2022. A modest recovery occurred in 2023, reaching US$340,053 million, followed by a further decrease to US$335,380 million in 2024. The most recent year, 2025, shows a significant increase, with the market value reaching US$387,123 million.
Invested capital demonstrated a consistent, albeit slow, upward trend throughout the period. Starting at US$290,004 million in 2021, it increased to US$301,478 million in 2022, US$304,400 million in 2023, US$307,881 million in 2024, and finally US$329,613 million in 2025. The rate of increase in invested capital appears to be accelerating in the later years.
- Market Value Added (MVA) Trend
- The Market Value Added exhibited a dramatic decrease from US$132,417 million in 2021 to US$33,957 million in 2022, mirroring the decline in market value. MVA remained relatively stable between 2022 and 2024, fluctuating around US$34-36 million. A substantial increase in MVA is observed in 2025, reaching US$57,510 million, coinciding with the increase in market value.
The relationship between market value and invested capital is reflected in the MVA. The significant drop in MVA in 2022 is directly attributable to the larger decrease in market value relative to the increase in invested capital. The recent increase in MVA in 2025 suggests that the market is now valuing the entity’s invested capital more favorably, or that the entity is generating greater value from its capital base.
Overall, the period was characterized by volatility in market valuation, while invested capital grew steadily. The MVA figures indicate a period of value destruction in 2022, followed by stabilization and a return to value creation in 2025.
MVA Spread Ratio
Verizon Communications Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AT&T Inc. | ||||||
| T-Mobile US 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 considerable fluctuation between 2021 and 2025. Initially high at US$132,417 million in 2021, MVA experienced a substantial decline to US$33,957 million in 2022, followed by a period of relative stability and then a moderate increase by 2025, reaching US$57,510 million. Invested capital demonstrated a consistent, albeit gradual, upward trend throughout the period, increasing from US$290,004 million in 2021 to US$329,613 million in 2025.
- MVA Spread Ratio Trend
- The MVA spread ratio, representing MVA as a percentage of invested capital, mirrored the fluctuations in MVA. A significant decrease is observed from 45.66% in 2021 to 11.26% in 2022. The ratio remained relatively stable between 2022 and 2024, at 11.71% and 8.93% respectively, indicating a consistent, but lower, value creation relative to invested capital. A notable increase to 17.45% occurred in 2025, suggesting improved value creation compared to the preceding years, though still below the 2021 level.
The substantial drop in both MVA and the MVA spread ratio in 2022 warrants further investigation. While invested capital continued to grow, the corresponding decrease in MVA suggests a potential decline in investor expectations or operational performance during that year. The subsequent stabilization and eventual increase in MVA and the spread ratio in later years indicate a partial recovery, but the 2025 levels do not fully restore the value creation observed in 2021. The consistent growth in invested capital, coupled with the fluctuating MVA, highlights the importance of analyzing the efficiency with which capital is being deployed to generate shareholder value.
- Key Observations
- The period under review demonstrates a dynamic relationship between invested capital and market-perceived value. The MVA spread ratio serves as a key indicator of this relationship, revealing periods of strong value creation (2021) and periods of diminished returns (2022-2024). The 2025 increase in the ratio suggests a positive trend, but continued monitoring is necessary to determine its sustainability.
MVA Margin
Verizon Communications Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Operating revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AT&T Inc. | ||||||
| T-Mobile US 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 significant fluctuation between 2021 and 2025. Initially high in 2021, MVA decreased substantially in the following two years before showing improvement towards the end of the period. Operating revenues demonstrated a more stable, albeit modest, growth pattern over the same timeframe. The MVA margin, calculated as MVA relative to operating revenues, reflects these movements and provides a useful perspective on value creation efficiency.
- Market Value Added (MVA)
- In 2021, MVA stood at US$132,417 million. A considerable decline was observed in 2022, falling to US$33,957 million, and a further, though smaller, decrease occurred in 2023, reaching US$35,653 million. A decrease to US$27,499 million was noted in 2024. By 2025, MVA rebounded strongly to US$57,510 million, indicating a recovery in perceived shareholder value.
- Operating Revenues
- Operating revenues increased from US$133,613 million in 2021 to US$136,835 million in 2022. A slight decrease to US$133,974 million occurred in 2023. Revenues then increased to US$134,788 million in 2024 and continued to rise to US$138,191 million in 2025. This suggests a generally positive, though not dramatic, trend in revenue generation.
- MVA Margin
- The MVA margin mirrored the fluctuations in MVA. It began at a high of 99.10% in 2021, reflecting the substantial MVA relative to revenues. The margin then decreased significantly to 24.82% in 2022 and 26.61% in 2023, corresponding with the declines in MVA. A further decrease to 20.40% was observed in 2024. The margin experienced a substantial increase in 2025, reaching 41.62%, driven by the recovery in MVA and continued revenue growth. This indicates a more efficient generation of value from each dollar of revenue in the final year of the period.
The considerable volatility in MVA and the corresponding MVA margin suggests that external factors or company-specific events significantly impacted investor perceptions of value during this period. While operating revenues demonstrated consistent growth, the ability to translate those revenues into shareholder value, as measured by MVA, varied considerably year to year.