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

Home Depot Inc. (NYSE:HD)

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

Home Depot Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015
Fair value of debt1 36,241  30,736  29,160  25,188  22,914  19,977 
Operating lease liability 5,894  4,750  4,518  4,483  4,080  4,201 
Market value of common equity 195,345  209,808  202,858  178,020  163,460  146,912 
Market (fair) value of Home Depot 237,480  245,293  236,536  207,691  190,454  171,090 
Less: Invested capital2 36,678  34,178  35,154  34,419  33,804  32,203 
MVA 200,802  211,116  201,382  173,272  156,650  138,887 

Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Home Depot Inc.’s market (fair) value less invested capital. Home Depot Inc.’s MVA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

MVA Spread Ratio

Home Depot Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 200,802  211,116  201,382  173,272  156,650  138,887 
Invested capital2 36,678  34,178  35,154  34,419  33,804  32,203 
Performance Ratio
MVA spread ratio3 547.47% 617.70% 572.85% 503.42% 463.40% 431.28%
Benchmarks
MVA Spread Ratio, Competitors4
Amazon.com Inc. 730.39% 729.67% 837.97% 863.33% 780.61%
Costco Wholesale Corp. 500.75% 490.54% 406.02% 313.15% 288.95% 315.22%
Dollar General Corp. 150.73% 129.61% 101.03% 80.23% 119.48% 111.51%
Lowe’s Cos. Inc. 185.64% 327.73% 226.12% 230.51% 244.12% 250.60%
Target Corp. 151.69% 106.62% 96.57% 70.25% 127.36% 124.73%
TJX Cos. Inc. 271.00% 346.02% 289.43% 302.98% 348.37% 329.64%
Walmart Inc. 145.51% 124.61% 127.07% 90.39% 85.24% 123.03%

Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 200,802 ÷ 36,678 = 547.47%

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. Home Depot Inc.’s MVA spread ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

MVA Margin

Home Depot Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Feb 1, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 200,802  211,116  201,382  173,272  156,650  138,887 
 
Net sales 110,225  108,203  100,904  94,595  88,519  83,176 
Add: Increase (decrease) in deferred revenue 334  (23) 136  103  98  131 
Adjusted net sales 110,559  108,180  101,040  94,698  88,617  83,307 
Performance Ratio
MVA margin2 181.62% 195.15% 199.31% 182.97% 176.77% 166.72%
Benchmarks
MVA Margin, Competitors3
Amazon.com Inc. 330.22% 320.48% 371.04% 269.68% 240.92%
Costco Wholesale Corp. 86.99% 77.31% 59.72% 45.97% 45.93% 48.16%
Dollar General Corp. 103.87% 91.58% 75.03% 59.47% 88.76% 87.86%
Lowe’s Cos. Inc. 68.98% 114.68% 91.69% 96.34% 101.33% 109.58%
Target Corp. 53.60% 37.31% 36.30% 27.36% 49.53% 51.77%
TJX Cos. Inc. 118.33% 150.58% 130.42% 136.36% 151.63% 147.57%
Walmart Inc. 46.83% 38.77% 36.53% 27.93% 27.76% 38.36%

Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 200,802 ÷ 110,559 = 181.62%

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. Home Depot Inc.’s MVA margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.