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.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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MVA
Procter & Gamble Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
The data reveals trends in the market value, invested capital, and market value added for the company over six consecutive fiscal years.
- Market (fair) value of P&G
- This metric exhibits a consistent upward trajectory from 2019 to 2024. The market value increased from $313,884 million in 2019 to $428,654 million in 2024, indicating a substantial growth of approximately 36.5% over the period. Notably, the pace of growth appears to have accelerated after 2022, with the highest year-over-year increase occurring between 2022 and 2023.
- Invested capital
- The invested capital shows a more fluctuating pattern compared to the market value. Starting at $89,875 million in 2019, it rose to a peak of $101,100 million in 2020, then experienced a decline over the following two years, reaching $93,924 million in 2022, before rising again to $97,641 million in 2024. Despite these fluctuations, the overall invested capital remains relatively stable with moderate growth, increasing by about 8.6% across the six-year span.
- Market value added (MVA)
- The market value added follows a similar upward trend as the market value itself, reflecting the difference between market value and invested capital. From $224,009 million in 2019, it increased steadily to $331,013 million in 2024. This growth suggests improved value creation over time, with the MVA augmentation rate aligning closely with the rise in market value rather than invested capital. The increase in MVA indicates enhanced efficiency in capital utilization or greater investor confidence during the period.
Overall, the data suggests that the company has experienced significant growth in its market valuation and the value it generates above its capital investments. The stable invested capital coupled with rising market value and MVA indicates effective capital management and positive market perception over the observed years.
MVA Spread Ratio
Procter & Gamble Co., MVA spread ratio calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
- Market Value Added (MVA)
- The Market Value Added exhibited a consistent upward trend from June 30, 2019, through June 30, 2024. Starting at US$224,009 million in 2019, it increased year-over-year to reach US$331,013 million by mid-2024. This growth reflects an overall enhancement in market perception and company value over the observed period.
- Invested Capital
- Invested Capital showed relative stability with minor fluctuations over the years. It rose from US$89,875 million in 2019 to a peak of US$101,100 million in 2020, followed by a slight decline and some variability in subsequent years, settling at US$97,641 million in 2024. This indicates controlled capital deployment with no significant expansion or contraction during the period.
- MVA Spread Ratio
- The MVA spread ratio demonstrated a steady increase from 249.24% in 2019 to 339.01% in 2024. This upward movement suggests an improving efficiency in value creation relative to invested capital. The ratio's rise indicates that the company is generating progressively higher market value compared to the capital invested, highlighting improving market confidence and potentially effective capital management.
MVA Margin
Procter & Gamble Co., MVA margin calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
- Market Value Added (MVA)
- The Market Value Added has shown a consistent upward trend over the six-year period. Starting at 224,009 million US dollars in June 2019, it increased steadily each year, reaching 331,013 million US dollars by June 2024. This growth reflects an overall increasing market valuation and shareholder value creation.
- Net Sales
- Net sales have also exhibited a positive growth trajectory from June 2019 to June 2024. Beginning at 67,684 million US dollars, net sales climbed gradually to 84,039 million US dollars in the last reported period. This steady increase suggests ongoing expansion in revenue generation for the company.
- MVA Margin
- The MVA margin, representing the ratio of market value added to net sales, fluctuated during the observed timeframe but showed a general upward movement. It rose from 330.96% in June 2019 to 393.88% in June 2024, with a slight dip in mid-period years (notably 354.79% in June 2022). The margin's growth indicates improved efficiency in translating sales into market value growth, despite minor volatility.