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.
MVA
Time Warner Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Time Warner Inc. market (fair) value less invested capital. | Time Warner Inc. MVA increased from 2015 to 2016 but then slightly decreased from 2016 to 2017. |
MVA Spread Ratio
Time Warner Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 42,735) | 47,766) | 26,550) | 43,686) | 25,906) | |
| Invested capital2 | 57,150) | 54,961) | 53,163) | 52,455) | 56,262) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 74.78% | 86.91% | 49.94% | 83.28% | 46.05% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Charter Communications Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2017 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 42,735 ÷ 57,150 = 74.78%
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. | Time Warner Inc. MVA spread ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
MVA Margin
Time Warner Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 42,735) | 47,766) | 26,550) | 43,686) | 25,906) | |
| Revenues | 31,271) | 29,318) | 28,118) | 27,359) | 29,795) | |
| Add: Increase (decrease) in deferred revenue | 129) | 82) | 74) | 1) | (57) | |
| Adjusted revenues | 31,400) | 29,400) | 28,192) | 27,360) | 29,738) | |
| Performance Ratio | ||||||
| MVA margin2 | 136.10% | 162.47% | 94.17% | 159.67% | 87.11% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Charter Communications Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 MVA. See details »
2 2017 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 42,735 ÷ 31,400 = 136.10%
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. | Time Warner Inc. MVA margin ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |