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

3M Co. (NYSE:MMM)

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

3M Co., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Fair value of debt and finance lease liabilities1 21,417  21,402  14,889  14,461  12,194 
Operating lease liability 865  854  1,000  1,069  783 
Market value of common equity 102,559  93,759  115,068  132,731  106,231 
Noncontrolling interest 64  63  52  59  45 
Less: Marketable securities 434  141  417  1,103  297 
Market (fair) value of 3M 124,471  115,937  130,592  147,217  118,956 
Less: Invested capital2 38,880  38,698  31,616  32,308  29,399 
MVA 85,591  77,239  98,976  114,909  89,557 

Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA 3M Co.’s market (fair) value less invested capital. 3M Co.’s MVA decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

MVA Spread Ratio

3M Co., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 85,591  77,239  98,976  114,909  89,557 
Invested capital2 38,880  38,698  31,616  32,308  29,399 
Performance Ratio
MVA spread ratio3 220.14% 199.60% 313.06% 355.67% 304.62%
Benchmarks
MVA Spread Ratio, Competitors4
General Electric Co. 124.10% 101.80% 41.61% 34.82% 94.90%
Honeywell International Inc. 236.48% 239.06% 192.08% 217.09% 171.60%

Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 85,591 ÷ 38,880 = 220.14%

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. 3M Co.’s MVA spread ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

MVA Margin

3M Co., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 85,591  77,239  98,976  114,909  89,557 
 
Net sales 32,184  32,136  32,765  31,657  30,109 
Add: Increase (decrease) in deferred revenue 68  (187) 104  (16) 29 
Adjusted net sales 32,252  31,949  32,869  31,641  30,138 
Performance Ratio
MVA margin2 265.38% 241.76% 301.12% 363.16% 297.16%
Benchmarks
MVA Margin, Competitors3
General Electric Co. 108.94% 90.88% 49.54% 59.45% 165.02%
Honeywell International Inc. 350.74% 278.15% 189.18% 214.57% 173.48%

Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 85,591 ÷ 32,252 = 265.38%

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. 3M Co.’s MVA margin ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.