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
Altria Group Inc., MVA calculation
US$ in millions
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).
1 Fair value of debt. See details »
2 Invested capital. See details »
Item | Description | The company |
---|---|---|
MVA | Altria Group Inc.’s market (fair) value less invested capital. | Altria Group Inc.’s MVA decreased from 2017 to 2018 and from 2018 to 2019. |
MVA Spread Ratio
Altria Group Inc., MVA spread ratio calculation, comparison to benchmarks
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 | 67,106 | 74,244 | 100,181 | 122,336 | 112,769 | |
Invested capital2 | 42,870 | 48,819 | 36,951 | 37,683 | 24,148 | |
Performance Ratio | ||||||
MVA spread ratio3 | 156.53% | 152.08% | 271.12% | 324.65% | 466.99% | |
Benchmarks | ||||||
MVA Spread Ratio, Competitors4 | ||||||
Philip Morris International Inc. | 450.40% | 396.80% | 516.28% | 574.09% | 539.72% |
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 67,106 ÷ 42,870 = 156.53%
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. | Altria Group Inc.’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
MVA Margin
Altria Group Inc., MVA margin calculation, comparison to benchmarks
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 | 67,106 | 74,244 | 100,181 | 122,336 | 112,769 | |
Net revenues | 25,110 | 25,364 | 25,576 | 25,744 | 25,434 | |
Performance Ratio | ||||||
MVA margin2 | 267.25% | 292.71% | 391.70% | 475.20% | 443.38% | |
Benchmarks | ||||||
MVA Margin, Competitors3 | ||||||
Philip Morris International Inc. | 180.83% | 153.68% | 213.48% | 218.58% | 198.44% |
Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Net revenues
= 100 × 67,106 ÷ 25,110 = 267.25%
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. | Altria Group Inc.’s MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |