Market Value Added (MVA)
Market value added (MVA) is the difference between a firm 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.
Paying user area
Try for free
Altria Group Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Altria Group Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Altria Group Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Altria
- The market value exhibited an initial upward trend from 2019, increasing from 109,807 million USD to a peak of 124,011 million USD in 2021. Following this peak, there was a noticeable decline over the subsequent two years, with the market value decreasing to 106,078 million USD in 2022 and further to 96,549 million USD by the end of 2023. This indicates a loss in market capitalization after 2021, reflecting potential external or internal factors affecting company valuation.
- Invested capital
- The invested capital showed a consistent downward trend throughout the entire period. Starting at 42,624 million USD in 2019, it slightly declined to 41,498 million USD in 2020, followed by more significant reductions in the following years. By 2021, invested capital dropped to 33,524 million USD, continuing to fall to 28,802 million USD in 2022 and slightly further to 28,647 million USD in 2023. This decreasing invested capital could point to asset disposals, reduced reinvestment, or efficiency-driven capital management strategies.
- Market value added (MVA)
- The market value added increased from 67,183 million USD in 2019 to a high of 90,487 million USD in 2021. This rise corresponds with the increase in market value seen over the same period, indicating growing market value beyond the invested capital. However, after 2021, MVA decreased to 77,276 million USD in 2022 and further declined to 67,902 million USD in 2023. The decline in MVA post-2021 suggests a reduction in the company's ability to generate value over the capital invested, aligning with the drop in market valuation observed.
MVA Spread Ratio
Altria Group Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
-
The Market Value Added demonstrated an increasing trend from 2019 through 2021, rising from approximately $67.2 billion to $90.5 billion. However, this upward progression was not sustained, as MVA decreased notably in 2022 and continued to decline in 2023, reaching around $67.9 billion.
- Invested Capital
-
The Invested Capital showed a declining pattern over the reported periods. It decreased consistently year-over-year from about $42.6 billion in 2019 to $28.6 billion in 2023. This steady contraction of invested capital might suggest divestments or capital restructuring.
- MVA Spread Ratio
-
The MVA spread ratio experienced strong growth from 2019 to 2021, increasing from 157.62% to nearly 270%. It maintained a high level in 2022, slightly decreasing to 268.3%, before declining more significantly in 2023 to 237.03%. Despite the recent downturn, the ratio remains at an elevated level compared to 2019, indicating that market valuation relative to invested capital has generally been favorable.
- Overall Analysis
-
The data reflect a period of robust market valuation growth up to 2021, followed by a retreat in subsequent years. While invested capital contracted steadily throughout the timeframe, the market appeared to value the company's capital increasingly efficiently until 2022. The decrease in MVA and the MVA spread ratio in the latest year suggests some moderation in market sentiment or valuation multiples. This may indicate challenges or shifting perceptions affecting the company's market worth relative to its capital base.
MVA Margin
Altria Group Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Net revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data indicates several distinct trends in key metrics over the five-year period ending in 2023.
- Market Value Added (MVA)
- The MVA exhibited an overall increase from 2019 through 2021, rising from $67,183 million to a peak of $90,487 million in 2021. This represents significant growth in market value during this period. However, the following years showed a reversal in this trend, with MVA decreasing to $77,276 million in 2022 and further declining to $67,902 million in 2023, nearly returning to the 2019 level.
- Net Revenues
- Net revenues showed a slight increasing trend from 2019 ($25,110 million) to 2020 ($26,153 million), but then plateaued and decreased gradually over the next three years, reducing to $24,483 million by 2023. This decline over the later years suggests potential challenges in revenue generation or market conditions affecting sales.
- MVA Margin
- The MVA margin percentage followed a similar pattern to MVA itself. It increased from 267.55% in 2019 to a high of 347.85% in 2021. After this peak, the margin declined to 307.92% in 2022 and 277.34% in 2023. Despite the decrease after 2021, the MVA margin remained above the initial 2019 level throughout the period, indicating sustained market value creation relative to revenues.
In summary, the data portrays a period of strong market value growth and expanding MVA margin up to 2021, followed by a notable downturn in the subsequent two years. Net revenues moved modestly, peaking in 2020 and declining in later years, contributing to the decrease in MVA and its margin. These patterns can signify external market pressures or company-specific factors impacting financial performance after 2021.