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

US$ in millions

Microsoft Excel LibreOffice Calc
Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Fair value of debt, capital lease and financing obligations1 62,207  51,470  52,269  56,040  60,722  61,524 
Operating lease liability 8,533  10,267  11,626  13,339  9,688  8,634 
Market value of common equity 278,732  262,523  218,619  216,330  260,376  245,740 
Redeemable noncontrolling interest —  —  —  —  —  1,491 
Nonredeemable noncontrolling interest 7,138  2,953  2,737  3,065  4,543  5,084 
Less: Available-for-sale securities —  3,547  2,046  —  —  — 
Market (fair) value of Walmart 356,611  323,666  283,206  288,775  335,328  322,473 
Less: Invested capital2 158,768  142,543  148,752  155,895  150,353  148,753 
MVA 197,842  181,123  134,453  132,879  184,976  173,720 

Based on: 10-K (filing date: 2019-03-28), 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).

1 Fair value of debt. See Details »

2 Invested capital. See Details »

Item Description The company
MVA Walmart Inc.’s market (fair) value less invested capital. Walmart Inc.’s MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread

Walmart Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 197,842  181,123  134,453  132,879  184,976  173,720 
Invested capital2 158,768  142,543  148,752  155,895  150,353  148,753 
Ratio
MVA spread3 124.61% 127.07% 90.39% 85.24% 123.03% 116.78%

Based on: 10-K (filing date: 2019-03-28), 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).

2019 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 197,842 ÷ 158,768 = 124.61%

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 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

MVA Margin

Walmart Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 197,842  181,123  134,453  132,879  184,976  173,720 
Net sales 510,329  495,761  481,317  478,614  482,229  473,076 
Ratio
MVA margin2 38.77% 36.53% 27.93% 27.76% 38.36% 36.72%

Based on: 10-K (filing date: 2019-03-28), 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).

2019 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Net sales
= 100 × 197,842 ÷ 510,329 = 38.77%

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 2017 to 2018 and from 2018 to 2019.