Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Market Value Added (MVA)

Microsoft Excel

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

Procter & Gamble Co., MVA calculation

US$ in millions

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Fair value of short-term and long-term debt1 33,178 30,698 34,069 37,675 31,687 32,053
Operating lease liability 817 800 850 891 1,143 1,253
Market value of common equity 366,043 345,816 343,262 329,929 285,958 205,609
Convertible Class A preferred stock, stated value $1 per share 819 843 870 897 928 967
Noncontrolling interest 288 265 276 357 385 590
Less: Investment securities 6,217 9,422
Market (fair) value of P&G 401,145 378,422 379,327 369,749 313,884 231,050
Less: Invested capital2 96,550 93,924 95,095 101,100 89,875 92,231
MVA 304,595 284,498 284,232 268,649 224,009 138,819

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Procter & Gamble Co. market (fair) value less invested capital. Procter & Gamble Co. MVA increased from 2021 to 2022 and from 2022 to 2023.

MVA Spread Ratio

Procter & Gamble Co., MVA spread ratio calculation

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Market value added (MVA)1 304,595 284,498 284,232 268,649 224,009 138,819
Invested capital2 96,550 93,924 95,095 101,100 89,875 92,231
Performance Ratio
MVA spread ratio3 315.48% 302.90% 298.89% 265.73% 249.24% 150.51%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 MVA. See details »

2 Invested capital. See details »

3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 304,595 ÷ 96,550 = 315.48%

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. Procter & Gamble Co. MVA spread ratio improved from 2021 to 2022 and from 2022 to 2023.

MVA Margin

Procter & Gamble Co., MVA margin calculation

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Selected Financial Data (US$ in millions)
Market value added (MVA)1 304,595 284,498 284,232 268,649 224,009 138,819
Net sales 82,006 80,187 76,118 70,950 67,684 66,832
Performance Ratio
MVA margin2 371.43% 354.79% 373.41% 378.64% 330.96% 207.71%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

1 MVA. See details »

2 2023 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 304,595 ÷ 82,006 = 371.43%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Procter & Gamble Co. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.