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
MVA Spread Ratio
MVA Margin

HP Inc., MVA calculation

US$ in millions

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Fair value of short- and long-term debt¹	6,000)	8,100)	7,100)	24,700)	19,900)	22,700)
Operating lease liability	1,260)	1,036)	901)	2,461)	2,681)	2,606)
Market value of common equity	34,627)	34,122)	26,452)	21,968)	73,033)	53,579)
Preferred stock, $0.01 par value; none issued	—)	—)	—)	—)	—)	—)
Non-controlling interests	—)	—)	—)	383)	396)	387)
Less: Available-for-sale investments	764)	1,210)	50)	634)	717)	834)
Market (fair) value of HP	41,124)	42,048)	34,402)	48,878)	95,293)	78,438)
Less: Invested capital²	7,561)	9,763)	9,027)	71,569)	65,787)	67,461)
MVA	33,562)	32,285)	25,376)	(22,691)	29,506)	10,977)

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	HP Inc. market (fair) value less invested capital.	HP Inc. MVA increased from 2016 to 2017 and from 2017 to 2018.

HP Inc., MVA spread ratio calculation, comparison to benchmarks

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	33,562)	32,285)	25,376)	(22,691)	29,506)	10,977)
Invested capital²	7,561)	9,763)	9,027)	71,569)	65,787)	67,461)
Performance Ratio
MVA spread ratio³	443.87%	330.68%	281.12%	-31.70%	44.85%	16.27%
Benchmarks
MVA Spread Ratio, Competitors⁴
Apple Inc.	—	—	—	—	—	—
Arista Networks Inc.	—	—	—	—	—	—
Cisco Systems Inc.	—	—	—	—	—	—
Dell Technologies Inc.	—	—	—	—	—	—
Super Micro Computer Inc.	13.48%	—	—	—	—	—

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

¹ MVA. See details »

² Invested capital. See details »

³ 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 33,562 ÷ 7,561 = 443.87%

⁴ Click competitor name to see calculations.

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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.	HP Inc. MVA spread ratio improved from 2016 to 2017 and from 2017 to 2018.

HP Inc., MVA margin calculation, comparison to benchmarks

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	33,562)	32,285)	25,376)	(22,691)	29,506)	10,977)

Net revenue	58,472)	52,056)	48,238)	103,355)	111,454)	112,298)
Add: Increase (decrease) in deferred revenue	167)	149)	(79)	498)	(310)	(481)
Adjusted net revenue	58,639)	52,205)	48,159)	103,853)	111,144)	111,817)
Performance Ratio
MVA margin²	57.24%	61.84%	52.69%	-21.85%	26.55%	9.82%
Benchmarks
MVA Margin, Competitors³
Apple Inc.	—	—	—	—	—	—
Arista Networks Inc.	—	—	—	—	—	—
Cisco Systems Inc.	—	—	—	—	—	—
Dell Technologies Inc.	—	—	—	—	—	—
Super Micro Computer Inc.	4.36%	—	—	—	—	—

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

¹ MVA. See details »

² 2018 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × 33,562 ÷ 58,639 = 57.24%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	HP Inc. MVA margin ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

HP Inc. (NYSE:HPQ)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin