Microsoft Excel LibreOffice Calc

T-Mobile US Inc. (TMUS)

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

T-Mobile US Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of short-term and long-term debt1 27,378  29,496  28,969  26,986  22,224 
Operating lease liability 12,366  9,806  9,662  12,829  11,895 
Market value of common equity 58,053  50,309  50,914  30,159  25,728 
5.50% Mandatory Convertible Preferred Stock Series A, par value $0.00001 per share —  —  —  —  — 
Less: Short-term investments —  —  —  2,998  — 
Market (fair) value of T-Mobile 97,798  89,610  89,545  66,975  59,846 
Less: Invested capital2 67,424  63,307  59,096  55,083  52,070 
MVA 30,373  26,304  30,449  11,893  7,777 

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA T-Mobile US Inc.’s market (fair) value less invested capital. T-Mobile US Inc.’s MVA decreased from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

MVA Spread Ratio

T-Mobile US Inc., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 30,373  26,304  30,449  11,893  7,777 
Invested capital2 67,424  63,307  59,096  55,083  52,070 
Performance Ratio
MVA spread ratio3 45.05% 41.55% 51.52% 21.59% 14.94%

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 MVA. See details »

2 Invested capital. See details »

3 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 30,373 ÷ 67,424 = 45.05%

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. T-Mobile US Inc.’s MVA spread ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

MVA Margin

T-Mobile US Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 30,373  26,304  30,449  11,893  7,777 
Revenues 43,310  40,604  37,242  32,053  29,564 
Add: Increase (decrease) in deferred revenue (81) (207) 269  258  14 
Adjusted revenues 43,229  40,397  37,511  32,311  29,578 
Performance Ratio
MVA margin2 70.26% 65.11% 81.17% 36.81% 26.29%

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17), 10-K (filing date: 2015-02-19).

1 MVA. See details »

2 2018 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 30,373 ÷ 43,229 = 70.26%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. T-Mobile US Inc.’s MVA margin ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.