Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

PepsiCo Inc. (NASDAQ:PEP)

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

PepsiCo Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Fair value of debt obligations1 34,000  32,000  41,000  38,000  35,000 
Operating lease liability 1,560  1,656  1,718  1,626  1,668 
Market value of common equity 203,527  162,817  159,229  152,327  140,060 
Preferred stock, no par value —  —  41  41  41 
Noncontrolling interests 82  84  92  104  107 
Less: Short-term investments 229  272  8,900  6,967  2,913 
Market (fair) value of PepsiCo 238,940  196,285  193,180  185,131  173,964 
Less: Invested capital2 59,384  60,452  57,590  59,304  60,167 
MVA 179,556  135,833  135,590  125,827  113,796 

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA PepsiCo Inc.’s market (fair) value less invested capital. PepsiCo Inc.’s MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

PepsiCo Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 179,556  135,833  135,590  125,827  113,796 
Invested capital2 59,384  60,452  57,590  59,304  60,167 
Performance Ratio
MVA spread ratio3 302.36% 224.70% 235.44% 212.17% 189.13%
Benchmarks
MVA Spread Ratio, Competitors4
Coca-Cola Co. 298.10% 242.85% 218.35% 178.29% 193.98%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 179,556 ÷ 59,384 = 302.36%

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. PepsiCo Inc.’s MVA spread ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

MVA Margin

PepsiCo Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 28, 2019 Dec 29, 2018 Dec 30, 2017 Dec 31, 2016 Dec 26, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 179,556  135,833  135,590  125,827  113,796 
Net revenue 67,161  64,661  63,525  62,799  63,056 
Performance Ratio
MVA margin2 267.35% 210.07% 213.44% 200.36% 180.47%
Benchmarks
MVA Margin, Competitors3
Coca-Cola Co. 589.44% 522.96% 447.65% 337.17% 339.58%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-11).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net revenue
= 100 × 179,556 ÷ 67,161 = 267.35%

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. PepsiCo Inc.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.