Microsoft Excel LibreOffice Calc

Pfizer Inc. (PFE)

Market Value Added (MVA)

Difficulty: Advanced

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

Pfizer Inc., MVA calculation

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of debt1 44,091  47,206  45,588  42,860  41,741 
PV of operating lease payments2 2,564  1,386  1,464  1,418  1,107 
Market value of common equity 240,671  212,755  202,721  183,483  210,342 
Preferred stock, no par value, at stated value 19  21  24  26  29 
Equity attributable to noncontrolling interests 351  348  296  278  321 
Less: Marketable securities 19,517  25,257  21,637  34,312  48,304 
Market (fair) value of Pfizer 268,179  236,459  228,456  193,753  205,236 
Less: Invested capital3 101,570  102,844  122,953  106,499  91,132 
MVA 166,609  133,615  105,503  87,254  114,104 

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Pfizer Inc.’s market (fair) value less invested capital. Pfizer Inc.’s MVA increased from 2016 to 2017 and from 2017 to 2018.

MVA Spread

Pfizer Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 166,609  133,615  105,503  87,254  114,104 
Invested capital2 101,570  102,844  122,953  106,499  91,132 
Ratio
MVA spread3 164.03% 129.92% 85.81% 81.93% 125.21%

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 166,609 ÷ 101,570 = 164.03%

Ratio Description The company
MVA spread 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. Pfizer Inc.’s MVA spread improved from 2016 to 2017 and from 2017 to 2018.

MVA Margin

Pfizer Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 166,609  133,615  105,503  87,254  114,104 
Revenues 53,647  52,546  52,824  48,851  49,605 
Ratio
MVA margin2 310.56% 254.28% 199.73% 178.61% 230.03%

Based on: 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-29), 10-K (filing date: 2015-02-27).

2018 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Revenues
= 100 × 166,609 ÷ 53,647 = 310.56%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Pfizer Inc.’s MVA margin improved from 2016 to 2017 and from 2017 to 2018.