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.
MVA
Kinder Morgan Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2015-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Kinder Morgan Inc. market (fair) value less invested capital. | Kinder Morgan Inc. MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
MVA Spread Ratio
Kinder Morgan Inc., MVA spread ratio calculation, comparison to benchmarks
| 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 | 20,804) | 10,803) | 11,067) | 22,532) | 1,158) | |
| Invested capital2 | 67,164) | 69,659) | 69,077) | 69,639) | 72,098) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 30.97% | 15.51% | 16.02% | 32.36% | 1.61% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | 21.23% | — | — | — | — | |
| ConocoPhillips | 38.09% | — | — | — | — | |
| Exxon Mobil Corp. | -5.98% | — | — | — | — | |
| Marathon Petroleum Corp. | -10.38% | — | — | — | — | |
| Occidental Petroleum Corp. | -5.81% | — | — | — | — | |
| Valero Energy Corp. | 4.90% | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 20,804 ÷ 67,164 = 30.97%
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. | Kinder Morgan Inc. MVA spread ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
MVA Margin
Kinder Morgan Inc., MVA margin calculation, comparison to benchmarks
| 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 | 20,804) | 10,803) | 11,067) | 22,532) | 1,158) | |
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Performance Ratio | ||||||
| MVA margin2 | 157.50% | 76.38% | 80.75% | 172.55% | 8.04% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | 29.71% | — | — | — | — | |
| ConocoPhillips | 67.50% | — | — | — | — | |
| Exxon Mobil Corp. | -7.10% | — | — | — | — | |
| Marathon Petroleum Corp. | -6.87% | — | — | — | — | |
| Occidental Petroleum Corp. | -23.98% | — | — | — | — | |
| Valero Energy Corp. | 1.84% | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2015-12-31).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 20,804 ÷ 13,209 = 157.50%
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. | Kinder Morgan Inc. MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |