Microsoft Excel LibreOffice Calc

Booking Holdings Inc. (BKNG)


Market Value Added (MVA)

Advanced level

Market value added (MVA) is the difference between a firms’s 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

Booking Holdings Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of senior Notes1 9,300  11,100  8,400  7,000  4,800 
Operating lease liability 593  687  527  422  387 
Market value of common equity 85,794  91,990  80,247  61,304  63,265 
Less: Marketable securities 11,367  15,281  11,810  9,103  4,898 
Market (fair) value of Booking Holdings 84,321  88,496  77,364  59,624  63,554 
Less: Invested capital2 7,267  6,421  6,629  6,915  9,096 
MVA 77,053  82,075  70,735  52,709  54,457 

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Booking Holdings Inc.’s market (fair) value less invested capital. Booking Holdings Inc.’s MVA increased from 2016 to 2017 but then slightly decreased from 2017 to 2018.

MVA Spread Ratio

Booking Holdings Inc., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 77,053  82,075  70,735  52,709  54,457 
Invested capital2 7,267  6,421  6,629  6,915  9,096 
Performance Ratio
MVA spread ratio3 1,060.25% 1,278.29% 1,067.09% 762.26% 598.66%

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 MVA. See details »

2 Invested capital. See details »

3 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 77,053 ÷ 7,267 = 1,060.25%

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. Booking Holdings Inc.’s MVA spread ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

MVA Margin

Booking Holdings Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 77,053  82,075  70,735  52,709  54,457 
Revenues 14,527  12,681  10,743  9,224  8,442 
Performance Ratio
MVA margin2 530.41% 647.23% 658.43% 571.43% 645.08%

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 MVA. See details »

2 2018 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 77,053 ÷ 14,527 = 530.41%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Booking Holdings Inc.’s MVA margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018.