Microsoft Excel LibreOffice Calc

Altria Group Inc. (MO)

Market Value Added (MVA)

Difficulty: Advanced

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

USD $ 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 borrowings and long-term debt1 25,204  15,300  15,100  14,500  17,000 
PV of operating lease payments2 160  162  217  251  253 
Market value of common equity 97,658  121,629  144,661  122,136  109,573 
Redeemable noncontrolling interest 39  38  38  37  35 
Noncontrolling interests 2  3  3  (7) (4)
Market (fair) value of Altria 123,063  137,132  160,019  136,917  126,857 
Less: Invested capital3 48,819  36,951  37,683  24,148  25,966 
MVA 74,244  100,181  122,336  112,769  100,891 

Based on: 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), 10-K (filing date: 2015-02-25).

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Altria Group Inc.’s market (fair) value less invested capital. Altria Group Inc.’s MVA declined from 2016 to 2017 and from 2017 to 2018.

MVA Spread

Altria Group Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 74,244  100,181  122,336  112,769  100,891 
Invested capital2 48,819  36,951  37,683  24,148  25,966 
Ratio
MVA spread3 152.08% 271.12% 324.65% 466.99% 388.55%

Based on: 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), 10-K (filing date: 2015-02-25).

2018 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 74,244 ÷ 48,819 = 152.08%

Ratio Description The company
MVA spread 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 deteriorated from 2016 to 2017 and from 2017 to 2018.

MVA Margin

Altria Group 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 (USD $ in millions)
Market value added (MVA)1 74,244  100,181  122,336  112,769  100,891 
Net revenues 25,364  25,576  25,744  25,434  24,522 
Ratio
MVA margin2 292.71% 391.70% 475.20% 443.38% 411.43%

Based on: 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), 10-K (filing date: 2015-02-25).

2018 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Net revenues
= 100 × 74,244 ÷ 25,364 = 292.71%

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 deteriorated from 2016 to 2017 and from 2017 to 2018.