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

Linde plc (NYSE:LIN)

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

Linde plc, 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 14,107  15,210  9,207  9,652  9,319 
Operating lease liability 976  1,206  538  488  442 
Market value of common equity 105,606  95,114  42,999  34,311  29,022 
Redeemable noncontrolling interests 113  16  11  11  113 
Noncontrolling interests 2,448  5,484  493  420  404 
Market (fair) value of Linde 123,250  117,030  53,248  44,882  39,300 
Less: Invested capital2 78,333  85,089  21,265  21,200  20,302 
MVA 44,917  31,941  31,983  23,682  18,998 

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

1 Fair value of debt. See details »

2 Invested capital. See details »

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

MVA Spread Ratio

Linde plc, 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 44,917  31,941  31,983  23,682  18,998 
Invested capital2 78,333  85,089  21,265  21,200  20,302 
Performance Ratio
MVA spread ratio3 57.34% 37.54% 150.40% 111.71% 93.58%
Benchmarks
MVA Spread Ratio, Competitors4
Air Products & Chemicals Inc. 228.05% 132.25% 150.16% 144.35% 155.52%
Ecolab Inc. 229.23% 218.53% 165.39% 169.50% 141.96%

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 44,917 ÷ 78,333 = 57.34%

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. Linde plc’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

MVA Margin

Linde plc, 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 44,917  31,941  31,983  23,682  18,998 
Sales 28,228  14,900  11,437  10,534  10,776 
Performance Ratio
MVA margin2 159.12% 214.37% 279.64% 224.82% 176.30%
Benchmarks
MVA Margin, Competitors3
Air Products & Chemicals Inc. 432.67% 247.26% 287.22% 230.16% 225.45%
Ecolab Inc. 278.20% 265.63% 207.83% 210.70% 167.23%

Based on: 10-K (filing date: 2020-03-02), 10-K (filing date: 2019-03-18), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-24).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Sales
= 100 × 44,917 ÷ 28,228 = 159.12%

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. Linde plc’s MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.