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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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MVA
PepsiCo Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of PepsiCo
- The market value increased notably from 236,631 million USD in 2020 to a peak of 277,692 million USD in 2021. Subsequently, there was a slight decline in 2022 and 2023, with values of 275,107 million USD and 274,249 million USD, respectively. By the end of 2024, the market value decreased more substantially to 239,611 million USD, approaching the 2020 level but still showing a decline from the earlier peak.
- Invested capital
- The invested capital remained relatively stable between 70,066 million USD and 69,452 million USD from 2020 through 2022. A notable increase occurred in 2023, reaching 75,038 million USD, which further rose slightly to 76,674 million USD by the end of 2024. This trend suggests a growing investment in the company's capital base over the most recent two years.
- Market value added (MVA)
- The MVA displayed a pattern similar to the market value. It rose significantly from 166,565 million USD in 2020 to a peak of 207,863 million USD in 2021. Following this peak, MVA gradually declined each year, falling to 162,937 million USD by 2024. This decline reflects a decrease in the premium investors place over the book value of invested capital, indicating potentially reduced market confidence or valuation pressures despite the increase in invested capital.
- Overall Analysis
- The data indicates a strong market valuation in 2021 followed by a tapering trend through 2024. Meanwhile, invested capital saw stability initially but increased in recent years, suggesting ongoing capital investment. The decline in MVA despite increased invested capital may signal challenges in value creation or shifting investor expectations. This combination of trends suggests a cautious market outlook amid ongoing capital commitments.
MVA Spread Ratio
PepsiCo Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added displays an increase from 166,565 million USD in 2020 to a peak of 207,863 million USD in 2021. Subsequently, it experiences a slight decline to 205,655 million USD in 2022, followed by a further decrease to 199,211 million USD in 2023, and a more pronounced drop to 162,937 million USD in 2024. This trend suggests a reduction in the company's market valuation surplus over the most recent years.
- Invested Capital
- Invested capital remains relatively stable from 2020 to 2022, showing minor fluctuations around 69,000 million USD. It then increases to 75,038 million USD in 2023 and continues to rise to 76,674 million USD in 2024. This upward trend indicates a gradual growth in the capital invested in the company's operations.
- MVA Spread Ratio
- The MVA spread ratio reaches its highest point in 2021 at approximately 298%. It decreases slightly in 2022 to around 296%, followed by a more significant reduction to 265% in 2023 and a marked decline to 213% in 2024. This decreasing ratio suggests a declining efficiency in generating market value above the invested capital level over the recent years.
- Overall Analysis
- Despite a steady increase in invested capital, the company experiences a peak in market value added in 2021, followed by consistent declines through to 2024. Correspondingly, the MVA spread ratio follows a similar pattern, indicating diminishing returns in terms of market value creation relative to invested capital. These trends imply that while capital investment is growing, the market perceives reduced value creation efficiency, potentially reflecting challenges in sustaining earlier performance levels or shifts in market conditions.
MVA Margin
PepsiCo Inc., MVA margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added experienced an overall increase from 2020 to 2021, rising from approximately 166.6 billion to 207.9 billion US dollars. However, from 2021 onwards, it displayed a declining trend, decreasing to around 205.7 billion in 2022, further to 199.2 billion in 2023, and a more pronounced drop to 162.9 billion by the end of 2024. This indicates a significant reduction in market value added in the last three years after an initial peak in 2021.
- Net Revenue
- Net revenue showed consistent growth throughout the period analyzed. Starting from roughly 70.4 billion US dollars in 2020, it increased steadily each year, reaching about 79.5 billion in 2021, then 86.4 billion in 2022, 91.5 billion in 2023, and slightly rising to approximately 91.9 billion in 2024. This suggests a positive trend in the company's ability to generate sales over the five-year span.
- MVA Margin
- The MVA margin, expressed as a percentage, also showed fluctuations. It increased notably from 236.7% in 2020 to 261.6% in 2021, signaling an improvement during this period. However, it then declined to 238.1% in 2022, followed by further decreases to 217.8% in 2023 and a sharp drop to 177.4% in 2024. This decreasing trend in MVA margin suggests diminishing market value generated per unit of net revenue in the latter part of the period.
- Overall Observations
- While net revenue demonstrated steady growth, the market value added and MVA margin both peaked in 2021 and showed a declining pattern thereafter. This divergence indicates that despite increasing sales, the company’s market value generation efficiency has weakened over the last three years, potentially reflecting changing market conditions, investor sentiment, or operational challenges affecting value creation relative to revenue.