Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Applied Materials Inc. (NASDAQ:AMAT)

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

Applied Materials Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016 Oct 25, 2015 Oct 26, 2014
Fair value of debt1 6,100  5,400  5,800  3,700  4,700  2,200 
Operating lease liability 151  154  91  59  56  63 
Market value of common equity 54,799  32,315  55,500  35,591  21,868  29,877 
Preferred stock: $.01 par value per share; no shares issued —  —  —  —  —  — 
Less: Available-for-sale investments 2,080  2,069  3,335  1,202  1,036  1,029 
Market (fair) value of Applied 58,970  35,800  58,056  38,149  25,588  31,111 
Less: Invested capital2 10,129  11,090  12,475  10,186  11,631  9,431 
MVA 48,841  24,710  45,581  27,962  13,957  21,680 

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Applied Materials Inc.’s market (fair) value less invested capital. Applied Materials Inc.’s MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

MVA Spread Ratio

Applied Materials Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016 Oct 25, 2015 Oct 26, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 48,841  24,710  45,581  27,962  13,957  21,680 
Invested capital2 10,129  11,090  12,475  10,186  11,631  9,431 
Performance Ratio
MVA spread ratio3 482.20% 222.80% 365.39% 274.51% 120.00% 229.88%
Benchmarks
MVA Spread Ratio, Competitors4
Advanced Micro Devices Inc. 1,655.65% 884.88% 559.44% 597.46% 54.57% —
Apple Inc. 1,873.75% 2,788.67% 1,392.21% 1,117.57% 1,316.26% 1,190.47%
Broadcom Inc. 168.52% 161.97% 151.73% 95.52% 408.84% 259.04%
Cisco Systems Inc. 295.15% 309.66% 135.02% 170.52% 141.33% 140.73%
Intel Corp. 286.44% 218.93% 237.54% 183.20% 134.62% —
Lam Research Corp. 326.52% 224.36% 287.44% 100.42% 124.75% —
Micron Technology Inc. 45.95% 56.63% 112.98% 36.75% 47.26% 179.63%
NVIDIA Corp. 1,776.58% 2,159.95% 1,500.16% 565.53% 318.07% —
Qualcomm Inc. 436.70% 397.88% 100.79% 375.32% 285.14% 532.34%
Texas Instruments Inc. 946.70% 730.79% 773.40% 552.87% 344.31% —

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 48,841 ÷ 10,129 = 482.20%

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. Applied Materials Inc.’s MVA spread ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

MVA Margin

Applied Materials Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 27, 2019 Oct 28, 2018 Oct 29, 2017 Oct 30, 2016 Oct 25, 2015 Oct 26, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 48,841  24,710  45,581  27,962  13,957  21,680 
 
Net sales 14,608  17,253  14,537  10,825  9,659  9,072 
Add: Increase (decrease) in deferred revenue —  (381) 379  272  (21) 35 
Adjusted net sales 14,608  16,872  14,916  11,097  9,638  9,107 
Performance Ratio
MVA margin2 334.35% 146.45% 305.59% 251.98% 144.81% 238.06%
Benchmarks
MVA Margin, Competitors3
Advanced Micro Devices Inc. 839.90% 363.54% 233.95% 314.05% 29.94% —
Apple Inc. 391.58% 315.76% 311.48% 212.49% 217.50% 257.63%
Broadcom Inc. 447.69% 346.64% 439.20% 330.71% 505.47% 531.26%
Cisco Systems Inc. 311.35% 308.27% 155.02% 164.22% 125.11% 128.23%
Intel Corp. 320.84% 232.60% 253.48% 198.19% 148.56% —
Lam Research Corp. 285.01% 195.14% 249.00% 156.84% 130.86% —
Micron Technology Inc. 76.12% 65.98% 158.59% 65.25% 48.86% 175.94%
NVIDIA Corp. 725.30% 1,436.52% 877.10% 271.29% 168.09% —
Qualcomm Inc. 386.87% 331.68% 224.91% 288.27% 234.81% 337.55%
Texas Instruments Inc. 793.53% 579.37% 612.75% 496.61% 326.02% —

Based on: 10-K (filing date: 2019-12-13), 10-K (filing date: 2018-12-13), 10-K (filing date: 2017-12-15), 10-K (filing date: 2016-12-15), 10-K (filing date: 2015-12-09), 10-K (filing date: 2014-12-17).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 48,841 ÷ 14,608 = 334.35%

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. Applied Materials Inc.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.