Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Market Value Added (MVA)

Microsoft Excel LibreOffice Calc

MVA

International Business Machines 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 68,781  67,228  46,806  49,251  44,351 
Operating lease liability 4,931  5,259  5,192  6,095  6,314 
Market value of common equity 107,866  125,896  124,332  144,209  169,608 
Noncontrolling interests 130  144  134  131  146 
Less: Marketable securities 609  761  618  623  716 
Market (fair) value of IBM 181,099  197,766  175,846  199,063  219,704 
Less: Invested capital2 130,176  133,824  110,894  108,645  106,417 
MVA 50,923  63,942  64,952  90,418  113,286 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA International Business Machines Corp. market (fair) value less invested capital. International Business Machines Corp. MVA decreased from 2018 to 2019 and from 2019 to 2020.

MVA Spread Ratio

International Business Machines 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 50,923  63,942  64,952  90,418  113,286 
Invested capital2 130,176  133,824  110,894  108,645  106,417 
Performance Ratio
MVA spread ratio3 39.12% 47.78% 58.57% 83.22% 106.46%
Benchmarks
MVA Spread Ratio, Competitors4
Accenture PLC 550.21% 505.40% 481.52% 496.80% 458.38%
Adobe Inc. 1,082.99% 884.94% 680.30% 847.52% 542.38%
Autodesk Inc. 538.60% 712.11% 829.14% 459.75% 263.98%
Automatic Data Processing Inc. 531.71% 696.65% 740.57% 591.35% 448.71%
Fidelity National Information Services Inc. 41.03% 56.84% 98.71% 84.96% 59.41%
Fiserv Inc. 69.66% 58.87% 299.38% 277.55% 238.19%
Intuit Inc. 976.09% 1,553.30% 1,330.67% 1,158.20% 988.58%
Mastercard Inc. 1,680.77% 2,296.30% 1,961.07% 1,816.28% 1,100.32%
Microsoft Corp. 1,347.87% 983.69% 879.73% 560.71% 681.54%
Oracle Corp. 180.84% 220.64% 167.48% 189.67% 172.38%
PayPal Holdings Inc. 977.63% 556.21% 514.02% 425.37% 204.40%
salesforce.com inc. 226.77% 326.09% 401.75% 263.57% 333.61%
ServiceNow Inc. 2,570.21% 2,187.92% 1,589.74% 1,417.41% 1,067.59%
Visa Inc. 665.77% 695.79% 581.94% 426.48% 323.60%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 50,923 ÷ 130,176 = 39.12%

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. International Business Machines Corp. MVA spread ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

MVA Margin

International Business Machines 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 50,923  63,942  64,952  90,418  113,286 
 
Revenue 73,620  77,147  79,591  79,139  79,919 
Add: Increase (decrease) in deferred income 1,257  1,267  (688) 663  (157)
Adjusted revenue 74,877  78,414  78,903  79,802  79,762 
Performance Ratio
MVA margin2 68.01% 81.54% 82.32% 113.30% 142.03%
Benchmarks
MVA Margin, Competitors3
Accenture PLC 279.96% 233.58% 202.17% 213.12% 181.64%
Adobe Inc. 1,554.19% 1,330.31% 1,114.60% 1,105.25% 703.93%
Autodesk Inc. 711.47% 1,160.93% 1,207.04% 685.72% 332.89%
Automatic Data Processing Inc. 350.03% 466.85% 405.73% 358.91% 304.06%
Fidelity National Information Services Inc. 243.93% 412.48% 262.79% 210.28% 154.14%
Fiserv Inc. 280.56% 355.04% 523.93% 442.97% 379.83%
Intuit Inc. 1,098.60% 1,034.92% 884.25% 643.71% 558.71%
Mastercard Inc. 2,159.18% 1,992.62% 1,467.79% 1,407.06% 1,039.07%
Microsoft Corp. 976.86% 711.95% 612.04% 442.48% 356.91%
Oracle Corp. 411.93% 401.82% 302.52% 389.03% 298.85%
PayPal Holdings Inc. 1,378.91% 697.17% 591.48% 570.26% 309.16%
salesforce.com inc. 558.41% 642.42% 643.77% 473.14% 500.78%
ServiceNow Inc. 2,100.88% 1,606.76% 1,344.55% 1,143.86% 801.72%
Visa Inc. 1,874.98% 1,543.59% 1,343.46% 1,186.67% 1,012.98%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 50,923 ÷ 74,877 = 68.01%

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. International Business Machines Corp. MVA margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.