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

Chevron Corp. (NYSE:CVX)

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

Chevron Corp., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Fair value of debt1 46,210  27,640  34,482  39,229  46,560 
Operating lease liability 3,906  3,885  1,708  2,102  1,777 
Market value of common equity 197,165  204,865  226,848  209,918  210,172 
Preferred stock, $1.00 par value; none issued —  —  —  —  — 
Redeemable noncontrolling interest 120  —  —  —  — 
Noncontrolling interests 918  995  1,088  1,195  1,166 
Less: Marketable securities 31  63  53  9  13 
Market (fair) value of Chevron 248,288  237,322  264,074  252,434  259,662 
Less: Invested capital2 197,314  195,769  212,825  208,093  214,697 
MVA 50,974  41,553  51,248  44,342  44,965 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Chevron Corp.’s market (fair) value less invested capital. Chevron Corp.’s MVA decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.

MVA Spread Ratio

Chevron Corp., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 50,974  41,553  51,248  44,342  44,965 
Invested capital2 197,314  195,769  212,825  208,093  214,697 
Performance Ratio
MVA spread ratio3 25.83% 21.23% 24.08% 21.31% 20.94%
Benchmarks
MVA Spread Ratio, Competitors4
Exxon Mobil Corp. 18.54% -5.98% 31.58% 28.38% 38.37%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 50,974 ÷ 197,314 = 25.83%

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. Chevron Corp.’s MVA spread ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

MVA Margin

Chevron Corp., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 50,974  41,553  51,248  44,342  44,965 
Sales and other operating revenues 94,471  139,865  158,902  134,674  110,215 
Performance Ratio
MVA margin2 53.96% 29.71% 32.25% 32.93% 40.80%
Benchmarks
MVA Margin, Competitors3
Exxon Mobil Corp. 28.44% -7.10% 33.10% 34.84% 49.21%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Sales and other operating revenues
= 100 × 50,974 ÷ 94,471 = 53.96%

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. Chevron Corp.’s MVA margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.