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

Sherwin-Williams Co. (NYSE:SHW)

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

Sherwin-Williams Co., MVA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of debt1 9,211,200  8,931,314  10,776,638  1,957,168  2,004,186 
Operating lease liability 1,742,300  1,699,113  1,649,766  1,382,618  1,274,211 
Market value of common equity 52,877,832  40,784,913  37,428,328  29,154,777  23,963,551 
Market (fair) value of Sherwin-Williams 63,831,332  51,415,340  49,854,732  32,494,563  27,241,949 
Less: Invested capital2 16,419,600  16,856,052  17,945,212  5,976,971  4,992,118 
MVA 47,411,732  34,559,288  31,909,520  26,517,592  22,249,830 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Sherwin-Williams Co.’s market (fair) value less invested capital. Sherwin-Williams Co.’s MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

Sherwin-Williams Co., MVA spread ratio calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 47,411,732  34,559,288  31,909,520  26,517,592  22,249,830 
Invested capital2 16,419,600  16,856,052  17,945,212  5,976,971  4,992,118 
Performance Ratio
MVA spread ratio3 288.75% 205.03% 177.82% 443.66% 445.70%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22), 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 × 47,411,732 ÷ 16,419,600 = 288.75%

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. Sherwin-Williams Co.’s MVA spread ratio improved from 2017 to 2018 and from 2018 to 2019.

MVA Margin

Sherwin-Williams Co., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 47,411,732  34,559,288  31,909,520  26,517,592  22,249,830 
Net sales 17,900,800  17,534,493  14,983,788  11,855,602  11,339,304 
Performance Ratio
MVA margin2 264.86% 197.09% 212.96% 223.67% 196.22%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 47,411,732 ÷ 17,900,800 = 264.86%

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Sherwin-Williams Co.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.