Market Value Added (MVA)
Market value added (MVA) is the difference between a firm 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
Emerson Electric Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Emerson Electric Co. market (fair) value less invested capital. | Emerson Electric Co. MVA increased from 2017 to 2018 and from 2018 to 2019. |
MVA Spread Ratio
Emerson Electric Co., MVA spread ratio calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 34,945) | 32,780) | 29,005) | 26,535) | 23,433) | 34,162) | |
| Invested capital2 | 16,266) | 15,617) | 15,181) | 16,521) | 17,328) | 17,628) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 214.84% | 209.89% | 191.06% | 160.62% | 135.23% | 193.79% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Boeing Co. | 489.80% | — | — | — | — | — | |
| Caterpillar Inc. | 108.09% | — | — | — | — | — | |
| Cummins Inc. | 87.16% | — | — | — | — | — | |
| Eaton Corp. plc | 66.62% | — | — | — | — | — | |
| General Electric Co. | 58.28% | — | — | — | — | — | |
| Honeywell International Inc. | 239.06% | — | — | — | — | — | |
| Lockheed Martin Corp. | 441.62% | — | — | — | — | — | |
| RTX Corp. | 82.79% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 34,945 ÷ 16,266 = 214.84%
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. | Emerson Electric Co. MVA spread ratio improved from 2017 to 2018 and from 2018 to 2019. |
MVA Margin
Emerson Electric Co., MVA margin calculation, comparison to benchmarks
| Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | Sep 30, 2015 | Sep 30, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 34,945) | 32,780) | 29,005) | 26,535) | 23,433) | 34,162) | |
| Net sales | 18,372) | 17,408) | 15,264) | 14,522) | 22,304) | 24,537) | |
| Performance Ratio | |||||||
| MVA margin2 | 190.21% | 188.30% | 190.02% | 182.73% | 105.06% | 139.23% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Boeing Co. | 227.39% | — | — | — | — | — | |
| Caterpillar Inc. | 116.96% | — | — | — | — | — | |
| Cummins Inc. | 55.86% | — | — | — | — | — | |
| Eaton Corp. plc | 91.84% | — | — | — | — | — | |
| General Electric Co. | 86.63% | — | — | — | — | — | |
| Honeywell International Inc. | 278.15% | — | — | — | — | — | |
| Lockheed Martin Corp. | 189.58% | — | — | — | — | — | |
| RTX Corp. | 111.10% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 34,945 ÷ 18,372 = 190.21%
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. | Emerson Electric Co. MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |