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

Altria Group Inc. (NYSE:MO)

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

Altria Group 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 borrowings and long-term debt1 30,700  25,204  15,300  15,100  14,500 
Operating lease liability 179  160  162  217  251 
Market value of common equity 78,962  97,658  121,629  144,661  122,136 
Redeemable noncontrolling interest 38  39  38  38  37 
Noncontrolling interests 97  (7)
Market (fair) value of Altria 109,976  123,063  137,132  160,019  136,917 
Less: Invested capital2 42,870  48,819  36,951  37,683  24,148 
MVA 67,106  74,244  100,181  122,336  112,769 

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

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 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

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 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.