Microsoft Excel LibreOffice Calc

Market Value Added (MVA)

Difficulty: Advanced

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

Marriott International Inc., MVA calculation

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Fair value of Long-term debt, including current portion1 8,219  8,455  4,166  3,886  3,311 
PV of operating lease payments2 1,819  1,408  806  895  939 
Market value of common equity 50,502  33,750  16,461  22,981  15,269 
Market (fair) value of Marriott 60,540  43,613  21,433  27,762  19,519 
Less: Invested capital3 14,229  16,537  758  1,411  1,560 
MVA 46,311  27,076  20,675  26,351  17,959 

Based on: 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19), 10-K (filing date: 2014-02-20).

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Marriott's market (fair) value less invested capital. Marriott International Inc.'s MVA increased from 2015 to 2016 and from 2016 to 2017.

MVA Spread

Marriott International Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 46,311  27,076  20,675  26,351  17,959 
Invested capital2 14,229  16,537  758  1,411  1,560 
Ratio
MVA spread3 325.48% 163.72% 2,728.35% 1,867.31% 1,151.45%

Based on: 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19), 10-K (filing date: 2014-02-20).

2017 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 46,311 ÷ 14,229 = 325.48%

Ratio Description The company
MVA spread 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. Marriott International Inc.'s MVA spread deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

MVA Margin

Marriott International Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 46,311  27,076  20,675  26,351  17,959 
Revenues 22,894  17,072  14,486  13,796  12,784 
Ratio
MVA margin2 202.29% 158.60% 142.72% 191.00% 140.48%

Based on: 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19), 10-K (filing date: 2014-02-20).

2017 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Revenues
= 100 × 46,311 ÷ 22,894 = 202.29%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Marriott International Inc.'s MVA margin improved from 2015 to 2016 and from 2016 to 2017.