Microsoft Excel LibreOffice Calc

Procter & Gamble Co. (NYSE:PG)


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

Procter & Gamble Co., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Fair value of short-term and long-term debt1 31,687  32,053  33,274  33,255  32,378  37,728 
Operating lease liability 1,143  1,253  1,403  1,440  1,483  1,770 
Market value of common equity 285,958  205,609  233,173  229,486  204,744  219,184 
Convertible Class A preferred stock, stated value $1 per share 928  967  1,006  1,038  1,077  1,111 
Noncontrolling interest 385  590  594  642  631  762 
Less: Investment securities 6,217  9,422  9,700  6,274  4,797  2,158 
Market (fair) value of P&G 313,884  231,050  259,750  259,587  235,516  258,398 
Less: Invested capital2 89,875  92,231  97,151  103,095  107,203  117,555 
MVA 224,009  138,819  162,599  156,492  128,313  140,842 

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Procter & Gamble Co.’s market (fair) value less invested capital. Procter & Gamble Co.’s MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

MVA Spread Ratio

Procter & Gamble Co., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 224,009  138,819  162,599  156,492  128,313  140,842 
Invested capital2 89,875  92,231  97,151  103,095  107,203  117,555 
Performance Ratio
MVA spread ratio3 249.24% 150.51% 167.37% 151.79% 119.69% 119.81%

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 224,009 ÷ 89,875 = 249.24%

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. Procter & Gamble Co.’s MVA spread ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

MVA Margin

Procter & Gamble Co., MVA margin calculation

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 224,009  138,819  162,599  156,492  128,313  140,842 
Net sales 67,684  66,832  65,058  65,299  76,279  83,062 
Performance Ratio
MVA margin2 330.96% 207.71% 249.93% 239.65% 168.22% 169.56%

Based on: 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07), 10-K (filing date: 2014-08-08).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 224,009 ÷ 67,684 = 330.96%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Procter & Gamble Co.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.