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

Colgate-Palmolive Co. (NYSE:CL)

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

Colgate-Palmolive Co., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of debt1 8,316  6,446  6,810  6,730  6,771 
Operating lease liability 636  620  697  808  861 
Market value of common equity 65,213  57,474  62,341  65,720  60,010 
Noncontrolling interests 441  299  303  260  255 
Less: Marketable securities 23  10  18  75  183 
Market (fair) value of Colgate 74,583  64,829  70,133  73,443  67,714 
Less: Invested capital2 13,859  11,791  11,744  11,692  11,343 
MVA 60,724  53,038  58,389  61,751  56,371 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Colgate-Palmolive Co.’s market (fair) value less invested capital. Colgate-Palmolive Co.’s MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

MVA Spread Ratio

Colgate-Palmolive Co., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 60,724  53,038  58,389  61,751  56,371 
Invested capital2 13,859  11,791  11,744  11,692  11,343 
Performance Ratio
MVA spread ratio3 438.16% 449.81% 497.18% 528.15% 496.98%
Benchmarks
MVA Spread Ratio, Competitors4
Estée Lauder Cos. Inc. 574.67% 432.54% 388.91% 466.86% 450.03%
Kimberly-Clark Corp. 415.42% 322.89% 302.19% 347.14% 363.72%
Nike Inc. 904.20% 751.49% 549.44% 635.80% 708.29%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 60,724 ÷ 13,859 = 438.16%

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. Colgate-Palmolive Co.’s MVA spread ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

MVA Margin

Colgate-Palmolive Co., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 60,724  53,038  58,389  61,751  56,371 
Net sales 15,693  15,544  15,454  15,195  16,034 
Performance Ratio
MVA margin2 386.95% 341.21% 377.82% 406.39% 351.57%
Benchmarks
MVA Margin, Competitors3
Estée Lauder Cos. Inc. 445.74% 326.67% 293.03% 262.31% 250.56%
Kimberly-Clark Corp. 256.79% 196.30% 197.43% 224.62% 231.01%
Nike Inc. 327.83% 314.21% 250.89% 262.06% 284.02%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 60,724 ÷ 15,693 = 386.95%

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. Colgate-Palmolive Co.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.