Stock Analysis on Net
Stock Analysis on Net
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, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Fair value of short-term and long-term debt1 37,675  31,687  32,053  33,274  33,255  32,378 
Operating lease liability 891  1,143  1,253  1,403  1,440  1,483 
Market value of common equity 329,929  285,958  205,609  233,173  229,486  204,744 
Convertible Class A preferred stock, stated value $1 per share 897  928  967  1,006  1,038  1,077 
Noncontrolling interest 357  385  590  594  642  631 
Less: Investment securities —  6,217  9,422  9,700  6,274  4,797 
Market (fair) value of Procter & Gamble 369,749  313,884  231,050  259,750  259,587  235,516 
Less: Invested capital2 101,100  89,875  92,231  97,151  103,095  107,203 
MVA 268,649  224,009  138,819  162,599  156,492  128,313 

Based on: 10-K (filing date: 2020-08-06), 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).

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 increased from 2018 to 2019 and from 2019 to 2020.

MVA Spread Ratio

Procter & Gamble Co., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 268,649  224,009  138,819  162,599  156,492  128,313 
Invested capital2 101,100  89,875  92,231  97,151  103,095  107,203 
Performance Ratio
MVA spread ratio3 265.73% 249.24% 150.51% 167.37% 151.79% 119.69%

Based on: 10-K (filing date: 2020-08-06), 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).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 268,649 ÷ 101,100 = 265.73%

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 improved from 2018 to 2019 and from 2019 to 2020.

MVA Margin

Procter & Gamble Co., MVA margin calculation

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 268,649  224,009  138,819  162,599  156,492  128,313 
Net sales 70,950  67,684  66,832  65,058  65,299  76,279 
Performance Ratio
MVA margin2 378.64% 330.96% 207.71% 249.93% 239.65% 168.22%

Based on: 10-K (filing date: 2020-08-06), 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).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 268,649 ÷ 70,950 = 378.64%

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 improved from 2018 to 2019 and from 2019 to 2020.