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.
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Sherwin-Williams Co. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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MVA
Sherwin-Williams Co., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data presents the market value, invested capital, and market value added (MVA) of Sherwin-Williams Co. over five consecutive years, from 2020 to 2024.
- Market (fair) value of Sherwin-Williams
- The market value shows an overall upward trend across the period. Starting at approximately 75.8 billion USD in 2020, it increased to about 82.0 billion USD in 2021, then experienced a decline to around 68.8 billion USD in 2022. However, the market value recovered significantly in the subsequent years, reaching approximately 90.2 billion USD in 2023 and further rising to nearly 99.0 billion USD in 2024. This pattern indicates some volatility with a dip in 2022 but a strong recovery afterward.
- Invested capital
- Invested capital demonstrates a moderate increase from about 15.5 billion USD in 2020 to roughly 17.3 billion USD in 2022. It declines slightly to around 16.4 billion USD in 2023 before a minor increase to approximately 16.7 billion USD in 2024. The invested capital thus shows relative stability with modest fluctuations rather than significant growth or shrinkage over the five-year span.
- Market value added (MVA)
- MVA closely follows the trend of the market value with an overall increasing trajectory. Starting at about 60.3 billion USD in 2020, it increases to nearly 66.2 billion USD in 2021, then dips to approximately 51.5 billion USD in 2022. Thereafter, there is a notable rise to about 73.7 billion USD in 2023 and further to nearly 82.3 billion USD in 2024. This indicates that the company has consistently generated value over and above its invested capital, with a peak reduction in 2022 followed by substantial recovery.
Overall, the data suggests that while Sherwin-Williams experienced some challenges in 2022 reflected in decreases in market value and MVA, the company maintained a stable level of invested capital and demonstrated resilience with strong recoveries in both market value and value added in the following years. The growing market value and MVA in 2023 and 2024 imply positive investor confidence and value creation beyond invested capital.
MVA Spread Ratio
Sherwin-Williams Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Linde plc | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA) Trends
- The Market Value Added (MVA) demonstrates an overall upward trend over the five-year period. Starting from approximately 60.3 billion US dollars in 2020, it increased to nearly 66.2 billion in 2021. However, there was a significant decline in 2022 to around 51.5 billion. Following this decrease, the MVA rebounded strongly in 2023 and 2024, reaching approximately 73.7 billion and 82.3 billion, respectively. This pattern indicates volatility in market valuation but a general positive growth trajectory by the end of the observed period.
- Invested Capital Trends
- Invested capital showed a moderate increase from 15.5 billion US dollars in 2020 to about 17.3 billion in 2022. In 2023, a reduction to approximately 16.4 billion was observed, followed by a slight increase to around 16.7 billion in 2024. The changes in invested capital are relatively smaller compared to the fluctuations in MVA, suggesting a degree of stability in the capital base used for business operations.
- MVA Spread Ratio Analysis
- The MVA spread ratio, reflecting the relationship between market value added and invested capital, showed a fluctuating but overall increasing trend. It started at 389.31% in 2020 and rose to 418.72% in 2021, before falling to 296.84% in 2022. Subsequently, it experienced a substantial increase to 449.28% in 2023 and further to 492.73% in 2024. This indicates that the value created by the company relative to its invested capital improved significantly after 2022, signaling enhanced market performance or value generation efficiency.
- Summary of Insights
- The data reflects significant variability in market perceptions and value generation from 2020 to 2024, with a notable dip in 2022 across all key metrics followed by strong recovery in subsequent years. While invested capital remained relatively stable, the marked increases in MVA and MVA spread ratio in 2023 and 2024 indicate improved market confidence and potentially greater returns on capital invested. These trends suggest effective management of capital and enhanced shareholder value creation in the later part of the observed timeframe.
MVA Margin
Sherwin-Williams Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Linde plc | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited an overall upward trend from 2020 to 2024, increasing from approximately 60.3 billion to 82.3 billion US dollars. A notable dip occurred in 2022, where MVA decreased to around 51.5 billion from 66.2 billion in 2021. However, the metric recovered significantly in the subsequent years, reaching its highest observed value in 2024.
- Net Sales
- Net sales consistently grew over the five-year period, rising from about 18.4 billion US dollars in 2020 to approximately 23.1 billion US dollars in 2024. While the rate of increase moderated in the last two years, the data indicate steady revenue expansion without any periods of decline.
- MVA Margin
- The MVA margin showed considerable fluctuation over the years. Beginning at 328.41% in 2020, it remained relatively stable in 2021 with a slight increase. A marked decline to 232.48% occurred in 2022, mirroring the dip in MVA during the same year. Subsequent recovery was strong, culminating in a peak margin of 356.4% in 2024, the highest in the examined period.
- Overall Insights
- The data reveal resilience in financial performance despite the setback experienced in 2022, with both market value added and MVA margin rebounding sharply in later years. Net sales growth appears steady and less volatile comparatively, supporting the overall recovery. The fluctuation in MVA margin underscores varying efficiency or market perception contributing to MVA beyond sales volume alone.