Microsoft Excel LibreOffice Calc

Walmart Inc. (WMT)


Market Value Added (MVA)

Difficulty: Advanced

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

Walmart Inc., MVA calculation

USD $ in millions

Microsoft Excel LibreOffice Calc
Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
Fair value of debt, capital lease and financing obligations1 51,470  52,269  56,040  60,722  61,524  60,819 
PV of operating lease payments2 10,267  11,626  13,339  9,688  8,634  9,146 
Market value of common equity 262,523  218,619  216,330  260,376  245,740  246,176 
Redeemable noncontrolling interest –  –  –  –  1,491  519 
Nonredeemable noncontrolling interest 2,953  2,737  3,065  4,543  5,084  5,395 
Less: Available-for-sale securities 3,547  2,046  –  –  –  – 
Market (fair) value of Walmart 323,666  283,206  288,775  335,328  322,473  322,055 
Less: Invested capital3 142,543  148,752  155,895  150,353  148,753  143,510 
MVA 181,123  134,453  132,879  184,976  173,720  178,545 

Based on: 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21), 10-K (filing date: 2013-03-26).

1 Fair value of debt. See Details »

2 Present value of operating lease payments. See Details »

3 Invested capital. See Details »

Item Description The company
MVA Walmart Inc.’s market (fair) value less invested capital. Walmart Inc.’s MVA increased from 2016 to 2017 and from 2017 to 2018.

MVA Spread

Walmart Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 181,123  134,453  132,879  184,976  173,720  178,545 
Invested capital2 142,543  148,752  155,895  150,353  148,753  143,510 
Ratio
MVA spread3 127.07% 90.39% 85.24% 123.03% 116.78% 124.41%

Based on: 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21), 10-K (filing date: 2013-03-26).

2018 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 181,123 ÷ 142,543 = 127.07%

Ratio Description The company
MVA spread 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. Walmart Inc.’s MVA spread improved from 2016 to 2017 and from 2017 to 2018.

MVA Margin

Walmart Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
Selected Financial Data (USD $ in millions)
Market value added (MVA)1 181,123  134,453  132,879  184,976  173,720  178,545 
Net sales 495,761  481,317  478,614  482,229  473,076  466,114 
Ratio
MVA margin2 36.53% 27.93% 27.76% 38.36% 36.72% 38.31%

Based on: 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21), 10-K (filing date: 2013-03-26).

2018 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Net sales
= 100 × 181,123 ÷ 495,761 = 36.53%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Walmart Inc.’s MVA margin improved from 2016 to 2017 and from 2017 to 2018.