Microsoft Excel LibreOffice Calc

Market Value Added (MVA)

Difficulty: Advanced

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

Abbott Laboratories, MVA calculation

USD $ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Fair value of Debt1 29,224  22,469  9,464  8,495  7,094 
PV of operating lease payments2 984  674  582  590  571 
Market value of common equity 105,077  77,224  56,764  71,480  59,902 
Preferred shares, one dollar par value, none issued
Noncontrolling interests in subsidiaries 201  179  115  113  96 
Less: Marketable securities 1,000  3,061  5,138  609  4,716 
Market (fair) value of Abbott 134,486  97,485  61,787  80,069  62,947 
Less: Invested capital3 65,387  45,299  30,408  32,173  26,662 
MVA 69,099  52,186  31,379  47,896  36,285 

Source: Based on data from Abbott Laboratories Annual Reports

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Abbott's market (fair) value less invested capital. Abbott Laboratories's MVA increased from 2015 to 2016 and from 2016 to 2017.

MVA Spread

Abbott Laboratories, MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 69,099  52,186  31,379  47,896  36,285 
Invested capital2 65,387  45,299  30,408  32,173  26,662 
Ratio
MVA spread3 105.68% 115.20% 103.19% 148.87% 136.09%

Source: Based on data from Abbott Laboratories Annual Reports

2017 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 69,099 ÷ 65,387 = 105.68%

Ratio Description The company
MVA spread 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. Abbott Laboratories's MVA spread improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

MVA Margin

Abbott Laboratories, MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 69,099  52,186  31,379  47,896  36,285 
Net sales 27,390  20,853  20,405  20,247  21,848 
Ratio
MVA margin2 252.28% 250.26% 153.78% 236.56% 166.08%

Source: Based on data from Abbott Laboratories Annual Reports

2017 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Net sales
= 100 × 69,099 ÷ 27,390 = 252.28%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Abbott Laboratories's MVA margin improved from 2015 to 2016 and from 2016 to 2017.