Stock Analysis on Net
Stock Analysis on Net

Philip Morris International Inc. (NYSE:PM)

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

Philip Morris International Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of debt, including finance lease obligations1 33,382  31,925  36,383  30,848  30,125 
Operating lease liability 763  657  719  592  601 
Market value of common equity 136,064  119,283  160,060  159,141  141,347 
Noncontrolling interests 1,978  1,720  1,856  1,788  1,768 
Market (fair) value of PMI 172,187  153,585  199,018  192,369  173,841 
Less: Invested capital2 31,284  30,915  32,294  28,538  27,175 
MVA 140,903  122,670  166,724  163,831  146,666 

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Philip Morris International Inc.’s market (fair) value less invested capital. Philip Morris International Inc.’s MVA decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

MVA Spread Ratio

Philip Morris International Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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)1 140,903  122,670  166,724  163,831  146,666 
Invested capital2 31,284  30,915  32,294  28,538  27,175 
Performance Ratio
MVA spread ratio3 450.40% 396.80% 516.28% 574.09% 539.72%
Benchmarks
MVA Spread Ratio, Competitors4
Altria Group Inc. 156.53% 152.08% 271.12% 324.65% 466.99%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 140,903 ÷ 31,284 = 450.40%

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. Philip Morris International Inc.’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

MVA Margin

Philip Morris International Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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)1 140,903  122,670  166,724  163,831  146,666 
Revenues including excise taxes 77,921  79,823  78,098  74,953  73,908 
Performance Ratio
MVA margin2 180.83% 153.68% 213.48% 218.58% 198.44%
Benchmarks
MVA Margin, Competitors3
Altria Group Inc. 267.25% 292.71% 391.70% 475.20% 443.38%

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Revenues including excise taxes
= 100 × 140,903 ÷ 77,921 = 180.83%

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. Philip Morris International Inc.’s MVA margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.