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
Philip Morris International Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Philip Morris International Inc. market (fair) value less invested capital. | Philip Morris International Inc. MVA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
MVA Spread Ratio
Philip Morris International Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 155,228) | 170,543) | 139,735) | 140,903) | 122,670) | |
| Invested capital2 | 47,466) | 29,268) | 31,958) | 31,284) | 30,915) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 327.03% | 582.70% | 437.24% | 450.40% | 396.80% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Altria Group Inc. | 268.30% | 269.92% | 179.16% | 157.62% | — | |
| Coca-Cola Co. | 267.55% | 289.24% | 244.21% | 297.74% | — | |
| Mondelēz International Inc. | 73.56% | 85.16% | 65.69% | 76.66% | — | |
| PepsiCo Inc. | 296.11% | 297.67% | 237.73% | 302.36% | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 155,228 ÷ 47,466 = 327.03%
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. | Philip Morris International Inc. MVA spread ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
MVA Margin
Philip Morris International Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 155,228) | 170,543) | 139,735) | 140,903) | 122,670) | |
| Revenues including excise taxes | 80,669) | 82,223) | 76,047) | 77,921) | 79,823) | |
| Performance Ratio | ||||||
| MVA margin2 | 192.43% | 207.42% | 183.75% | 180.83% | 153.68% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Altria Group Inc. | 307.92% | 347.85% | 284.28% | 267.55% | — | |
| Coca-Cola Co. | 497.46% | 600.94% | 559.78% | 589.26% | — | |
| Mondelēz International Inc. | 149.09% | 182.53% | 151.66% | 174.63% | — | |
| PepsiCo Inc. | 238.05% | 261.55% | 236.69% | 267.35% | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Revenues including excise taxes
= 100 × 155,228 ÷ 80,669 = 192.43%
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. | Philip Morris International Inc. MVA margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |