Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Market Value Added (MVA)

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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

Verizon Communications Inc., MVA calculation

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Fair value of short-term and long-term debt, including finance leases1 147,701 140,773 170,530 158,036 130,316
Operating lease liability 24,268 25,692 27,062 21,485 21,654
Market value of common equity 166,994 168,037 223,828 233,805 240,707
Series preferred stock, $0.10 par value; none issued
Noncontrolling interests 1,369 1,319 1,410 1,430 1,440
Less: Marketable securities 279 386 409 459 442
Market (fair) value of Verizon 340,053 335,435 422,421 414,297 393,675
Less: Invested capital2 304,400 301,478 290,004 247,730 220,656
MVA 35,653 33,957 132,417 166,567 173,019

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Verizon Communications Inc. market (fair) value less invested capital. Verizon Communications Inc. MVA decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

MVA Spread Ratio

Verizon Communications Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Market value added (MVA)1 35,653 33,957 132,417 166,567 173,019
Invested capital2 304,400 301,478 290,004 247,730 220,656
Performance Ratio
MVA spread ratio3 11.71% 11.26% 45.66% 67.24% 78.41%
Benchmarks
MVA Spread Ratio, Competitors4
AT&T Inc. -12.02% -5.96% -5.92% 5.21% 14.36%
T-Mobile US Inc. 59.31% 50.31% 44.34% 45.84% 53.16%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 MVA. See details »

2 Invested capital. See details »

3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 35,653 ÷ 304,400 = 11.71%

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. Verizon Communications Inc. MVA spread ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

MVA Margin

Verizon Communications Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Market value added (MVA)1 35,653 33,957 132,417 166,567 173,019
Operating revenues 133,974 136,835 133,613 128,292 131,868
Performance Ratio
MVA margin2 26.61% 24.82% 99.10% 129.83% 131.21%
Benchmarks
MVA Margin, Competitors3
AT&T Inc. -32.02% -15.28% -15.39% 12.49% 34.67%
T-Mobile US Inc. 140.53% 117.87% 102.11% 118.55% 86.46%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 MVA. See details »

2 2023 Calculation
MVA margin = 100 × MVA ÷ Operating revenues
= 100 × 35,653 ÷ 133,974 = 26.61%

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. Verizon Communications Inc. MVA margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.