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

T-Mobile US Inc. (NASDAQ: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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of short-term and long-term debt, including financing lease liabilities1 28,173  27,378  29,496  28,969  26,986 
Operating lease liability 12,826  12,366  9,806  9,662  12,829 
Market value of common equity 70,928  58,053  50,309  50,914  30,159 
5.50% Mandatory Convertible Preferred Stock Series A —  —  —  —  — 
Less: Short-term investments —  —  —  —  2,998 
Market (fair) value of T-Mobile 111,927  97,798  89,610  89,545  66,975 
Less: Invested capital2 73,081  67,424  63,307  59,096  55,083 
MVA 38,846  30,373  26,304  30,449  11,893 

Based on: 10-K (filing date: 2020-02-06), 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).

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 increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

T-Mobile US Inc., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 38,846  30,373  26,304  30,449  11,893 
Invested capital2 73,081  67,424  63,307  59,096  55,083 
Performance Ratio
MVA spread ratio3 53.16% 45.05% 41.55% 51.52% 21.59%

Based on: 10-K (filing date: 2020-02-06), 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).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 38,846 ÷ 73,081 = 53.16%

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 improved from 2017 to 2018 and from 2018 to 2019.

MVA Margin

T-Mobile US Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 38,846  30,373  26,304  30,449  11,893 
 
Revenues 44,998  43,310  40,604  37,242  32,053 
Add: Increase (decrease) in deferred revenue (67) (81) (207) 269  258 
Adjusted revenues 44,931  43,229  40,397  37,511  32,311 
Performance Ratio
MVA margin2 86.46% 70.26% 65.11% 81.17% 36.81%

Based on: 10-K (filing date: 2020-02-06), 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).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 38,846 ÷ 44,931 = 86.46%

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 improved from 2017 to 2018 and from 2018 to 2019.