Stock Analysis on Net

PayPal Holdings Inc. (NASDAQ:PYPL) 

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

PayPal Holdings Inc., MVA calculation

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Fair value of debt1 9,398  9,700  5,000  1,998  1,000 
Operating lease liability 762  786  507  586  504 
Market value of common equity 144,810  315,562  140,626  106,586  90,720 
Preferred stock, $0.0001 par value; unissued —  —  —  —  — 
Noncontrolling interest —  44  44  —  — 
Market (fair) value of PayPal 154,970  326,092  146,177  109,170  92,224 
Less: Invested capital2 31,317  30,260  22,276  17,780  17,554 
MVA 123,653  295,832  123,901  91,390  74,670 

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), 10-K (reporting date: 2017-12-31).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA PayPal Holdings Inc. market (fair) value less invested capital. PayPal Holdings Inc. MVA increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

MVA Spread Ratio

PayPal Holdings Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Market value added (MVA)1 123,653  295,832  123,901  91,390  74,670 
Invested capital2 31,317  30,260  22,276  17,780  17,554 
Performance Ratio
MVA spread ratio3 394.84% 977.63% 556.21% 514.02% 425.37%
Benchmarks
MVA Spread Ratio, Competitors4
Accenture PLC 739.74% 550.21% 505.40% 481.52% 496.80%
Adobe Inc. 1,033.13% 1,082.99% 884.94% 680.30% 847.52%
International Business Machines Corp. 54.96% 39.12% 47.78% 58.57% 83.22%
Intuit Inc. 1,175.12% 976.09% 1,553.30% 1,330.67% 1,158.20%
Mastercard Inc. 1,583.49% 1,680.77% 2,296.30% 1,961.07% 1,816.28%
Microsoft Corp. 1,383.21% 1,315.93% 962.41% 863.13% 521.14%
Oracle Corp. 260.27% 180.84% 220.64% 167.48% 189.67%
Salesforce Inc. 270.75% 226.93% 326.41% 402.29% 263.82%
ServiceNow Inc. 1,798.18% 2,575.52% 2,192.76% 1,592.79% 1,419.90%
Visa Inc. 641.98% 665.77% 695.79% 581.94% 426.48%

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), 10-K (reporting date: 2017-12-31).

1 MVA. See details »

2 Invested capital. See details »

3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 123,653 ÷ 31,317 = 394.84%

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. PayPal Holdings Inc. MVA spread ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

MVA Margin

PayPal Holdings Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Market value added (MVA)1 123,653  295,832  123,901  91,390  74,670 
Net revenues 25,371  21,454  17,772  15,451  13,094 
Performance Ratio
MVA margin2 487.38% 1,378.91% 697.17% 591.48% 570.26%
Benchmarks
MVA Margin, Competitors3
Accenture PLC 379.26% 279.96% 233.58% 202.17% 213.12%
Adobe Inc. 1,287.44% 1,554.19% 1,330.31% 1,114.60% 1,105.25%
International Business Machines Corp. 104.85% 68.01% 81.54% 82.32% 113.30%
Intuit Inc. 1,489.94% 1,098.60% 1,034.92% 884.25% 643.71%
Mastercard Inc. 1,859.24% 2,159.18% 1,992.62% 1,467.79% 1,407.06%
Microsoft Corp. 1,148.11% 976.86% 711.95% 612.04% 442.48%
Oracle Corp. 514.72% 411.93% 401.82% 302.52% 389.03%
Salesforce Inc. 620.94% 558.53% 642.57% 643.95% 473.27%
ServiceNow Inc. 1,555.49% 2,101.04% 1,606.91% 1,344.70% 1,143.99%
Visa Inc. 1,619.41% 1,874.98% 1,543.59% 1,343.46% 1,186.67%

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), 10-K (reporting date: 2017-12-31).

1 MVA. See details »

2 2021 Calculation
MVA margin = 100 × MVA ÷ Net revenues
= 100 × 123,653 ÷ 25,371 = 487.38%

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. PayPal Holdings Inc. MVA margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.