Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

Market Value Added (MVA)

Microsoft Excel

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.


MVA

Emerson Electric Co., MVA calculation

US$ in millions

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Fair value of debt1 6,190 4,895 4,977 7,123 7,198 6,435
Operating lease liability 470 592 481 550 782 810
Market value of common equity 44,511 42,867 38,676 35,333 32,734 44,497
Noncontrolling interests in subsidiaries 40 43 52 50 47 48
Market (fair) value of Emerson 51,211 48,397 44,186 43,056 40,761 51,790
Less: Invested capital2 16,266 15,617 15,181 16,521 17,328 17,628
MVA 34,945 32,780 29,005 26,535 23,433 34,162

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Emerson Electric Co. market (fair) value less invested capital. Emerson Electric Co. MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

Emerson Electric Co., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 34,945 32,780 29,005 26,535 23,433 34,162
Invested capital2 16,266 15,617 15,181 16,521 17,328 17,628
Performance Ratio
MVA spread ratio3 214.84% 209.89% 191.06% 160.62% 135.23% 193.79%
Benchmarks
MVA Spread Ratio, Competitors4
Boeing Co. 489.80%
Caterpillar Inc. 108.09%
Eaton Corp. plc 66.62%
GE Aerospace 58.28%
Honeywell International Inc. 239.06%
Lockheed Martin Corp. 441.62%
RTX Corp. 82.79%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 34,945 ÷ 16,266 = 214.84%

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. Emerson Electric Co. MVA spread ratio improved from 2017 to 2018 and from 2018 to 2019.

MVA Margin

Emerson Electric Co., MVA margin calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Market value added (MVA)1 34,945 32,780 29,005 26,535 23,433 34,162
Net sales 18,372 17,408 15,264 14,522 22,304 24,537
Performance Ratio
MVA margin2 190.21% 188.30% 190.02% 182.73% 105.06% 139.23%
Benchmarks
MVA Margin, Competitors3
Boeing Co. 227.39%
Caterpillar Inc. 116.96%
Eaton Corp. plc 91.84%
GE Aerospace 86.63%
Honeywell International Inc. 278.15%
Lockheed Martin Corp. 189.58%
RTX Corp. 111.10%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 34,945 ÷ 18,372 = 190.21%

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. Emerson Electric Co. MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.