Microsoft Excel LibreOffice Calc

Applied Materials Inc. (AMAT)


Market Value Added (MVA)

High level of difficulty

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 28, 2018 Oct 29, 2017 Oct 30, 2016 Oct 25, 2015 Oct 26, 2014 Oct 27, 2013
Fair value of debt1 5,400  5,800  3,700  4,700  2,200  2,100 
Operating lease liability 154  91  59  56  63  77 
Market value of common equity 32,315  55,500  35,591  21,868  29,877  20,001 
Preferred stock: $.01 par value per share; no shares issued —  —  —  —  —  — 
Less: Available-for-sale investments 2,069  3,335  1,202  1,036  1,029  1,109 
Market (fair) value of Applied 35,800  58,056  38,149  25,588  31,111  21,069 
Less: Invested capital2 11,090  12,475  10,186  11,631  9,431  8,519 
MVA 24,710  45,581  27,962  13,957  21,680  12,550 

Based on: 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), 10-K (filing date: 2013-12-04).

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

MVA Spread Ratio

Applied Materials Inc., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Oct 28, 2018 Oct 29, 2017 Oct 30, 2016 Oct 25, 2015 Oct 26, 2014 Oct 27, 2013
Selected Financial Data (US$ in millions)
Market value added (MVA)1 24,710  45,581  27,962  13,957  21,680  12,550 
Invested capital2 11,090  12,475  10,186  11,631  9,431  8,519 
Performance Ratio
MVA spread ratio3 222.80% 365.39% 274.51% 120.00% 229.88% 147.33%

Based on: 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), 10-K (filing date: 2013-12-04).

1 MVA. See details »

2 Invested capital. See details »

3 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 24,710 ÷ 11,090 = 222.80%

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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

MVA Margin

Applied Materials Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Oct 28, 2018 Oct 29, 2017 Oct 30, 2016 Oct 25, 2015 Oct 26, 2014 Oct 27, 2013
Selected Financial Data (US$ in millions)
Market value added (MVA)1 24,710  45,581  27,962  13,957  21,680  12,550 
Net sales 17,253  14,537  10,825  9,659  9,072  7,509 
Add: Increase (decrease) in deferred revenue (381) 379  272  (21) 35 
Adjusted net sales 16,872  14,916  11,097  9,638  9,107  7,516 
Performance Ratio
MVA margin2 146.45% 305.59% 251.98% 144.81% 238.06% 166.98%

Based on: 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), 10-K (filing date: 2013-12-04).

1 MVA. See details »

2 2018 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 24,710 ÷ 16,872 = 146.45%

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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.