Market Value Added (MVA)
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
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
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
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. |