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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- Analysis of Geographic Areas
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2008
- Net Profit Margin since 2008
- Operating Profit Margin since 2008
- Return on Equity (ROE) since 2008
- Price to Operating Profit (P/OP) since 2008
- Price to Sales (P/S) since 2008
- Aggregate Accruals
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MVA
Keurig Dr Pepper Inc., MVA calculation
US$ in millions
Based on: 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 »
The analysis of the financial data over the four-year period reveals several notable trends concerning the market value, invested capital, and market value added (MVA) of the company.
- Market (fair) value of KDP
- The market value demonstrates a consistent upward trend throughout the timeframe. Starting at approximately US$51.4 billion at the end of 2018, it increased steadily each year, reaching about US$66.6 billion by the end of 2021. This reflects growing investor confidence or improved market perception over these years.
- Invested capital
- The invested capital shows a slight decline from US$44.6 billion in 2018 to US$43.8 billion in 2020, followed by a marginal increase to US$44.1 billion in 2021. Overall, the invested capital level has remained relatively stable with minor fluctuations, indicating controlled investment levels or possibly divestitures balancing new investments.
- Market value added (MVA)
- The MVA exhibits a strong and continuous increase, rising from approximately US$6.8 billion in 2018 to US$22.5 billion in 2021. This metric’s growth surpasses that of both market value and invested capital, signaling value creation beyond the invested capital and suggesting efficient capital management and increasing market valuation premium over the invested capital base.
In summary, while the invested capital amount remained almost flat with slight variations, the market value and market value added significantly increased, illustrating enhanced market appraisal and successful value generation efforts by the company during the period analyzed.
MVA Spread Ratio
Keurig Dr Pepper Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Market value added (MVA)1 | |||||
| Invested capital2 | |||||
| Performance Ratio | |||||
| MVA spread ratio3 | |||||
| Benchmarks | |||||
| MVA Spread Ratio, Competitors4 | |||||
| Coca-Cola Co. | |||||
| Mondelēz International Inc. | |||||
| PepsiCo Inc. | |||||
| Philip Morris International Inc. | |||||
Based on: 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 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The analysis of the financial data reveals consistent growth and improving efficiency in the company's value generation over the four-year period.
- Market Value Added (MVA)
- The market value added increased steadily from $6,786 million in 2018 to $22,478 million in 2021. This significant rise indicates that the company's market valuation has expanded considerably, reflecting positive investor sentiment and enhanced perceived business value.
- Invested Capital
- The invested capital remained relatively stable, fluctuating slightly between $44,635 million in 2018 and $44,109 million in 2021. This stability suggests that the company maintained a consistent level of investment base throughout the period without major capital expansions or contractions.
- MVA Spread Ratio
- The MVA spread ratio demonstrated a notable upward trend, increasing from 15.2% in 2018 to 50.96% in 2021. This sharp increase reflects an improving spread between returns and cost of capital, signifying enhanced operational efficiency and value creation for shareholders over time.
In summary, the company exhibited strong growth in market value added alongside a stable invested capital base, resulting in a substantially improved MVA spread ratio. These trends collectively indicate increasing effectiveness in leveraging invested capital to generate shareholder value.
MVA Margin
Keurig Dr Pepper Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Market value added (MVA)1 | |||||
| Net sales | |||||
| Performance Ratio | |||||
| MVA margin2 | |||||
| Benchmarks | |||||
| MVA Margin, Competitors3 | |||||
| Coca-Cola Co. | |||||
| Mondelēz International Inc. | |||||
| PepsiCo Inc. | |||||
| Philip Morris International Inc. | |||||
Based on: 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 2021 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data exhibits a consistent upward trend across all reported metrics over the four-year period.
- Market Value Added (MVA)
- The MVA shows a significant increase each year, rising from $6,786 million in 2018 to $22,478 million in 2021. This represents more than a threefold increase over the period, indicating substantial growth in the company's market valuation beyond the invested capital.
- Net Sales
- Net sales have also increased steadily, from $7,442 million in 2018 to $12,683 million in 2021. The growth is noticeable though less pronounced than that of MVA, suggesting improving top-line performance with expanding revenue streams.
- MVA Margin
- The MVA margin, which compares market value added relative to net sales, shows marked improvement. It increased from 91.18% in 2018 to 177.23% in 2021. This sharp rise indicates that the company is generating significantly higher market value added for every dollar of net sales, reflecting enhanced value creation efficiency over time.
Overall, the data indicates robust growth in market value and sales, with an accelerating capacity to create market value relative to sales revenue. This suggests effective strategic management and positive market perception during the reported timeframe.