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
MVA Spread Ratio
MVA Margin

Estée Lauder Cos. Inc., MVA calculation

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Fair value of current and long-term debt¹	7,665)	5,139)	6,262)	6,902)	3,706)	3,667)
Operating lease liability	2,055)	2,233)	2,530)	2,653)	2,826)	2,777)
Market value of common equity	56,047)	94,733)	123,134)	80,434)	71,123)	49,788)
Redeemable noncontrolling interest	832)	842)	857)	—)	—)	—)
Noncontrolling interests	—)	—)	34)	27)	25)	22)
Less: Available-for-sale investments	—)	—)	—)	—)	—)	1,222)
Market (fair) value of Estée Lauder	66,599)	102,947)	132,817)	90,016)	77,680)	55,032)
Less: Invested capital²	17,123)	14,574)	15,610)	13,826)	11,514)	10,334)
MVA	49,476)	88,373)	117,207)	76,190)	66,166)	44,698)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ Fair value of debt. See details »

² Invested capital. See details »

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Item	Description	The company
MVA	Estée Lauder Cos. Inc. market (fair) value less invested capital.	Estée Lauder Cos. Inc. MVA decreased from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., MVA spread ratio calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	49,476)	88,373)	117,207)	76,190)	66,166)	44,698)
Invested capital²	17,123)	14,574)	15,610)	13,826)	11,514)	10,334)
Performance Ratio
MVA spread ratio³	288.94%	606.37%	750.85%	551.06%	574.67%	432.54%
Benchmarks
MVA Spread Ratio, Competitors⁴
Procter & Gamble Co.	315.48%	302.90%	298.89%	265.73%	249.24%	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ MVA. See details »

² Invested capital. See details »

³ 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 49,476 ÷ 17,123 = 288.94%

⁴ Click competitor name to see calculations.

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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.	Estée Lauder Cos. Inc. MVA spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc., MVA margin calculation, comparison to benchmarks

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Selected Financial Data (US$ in millions)
Market value added (MVA)¹	49,476)	88,373)	117,207)	76,190)	66,166)	44,698)

Net sales	15,910)	17,737)	16,215)	14,294)	14,863)	13,683)
Add: Increase (decrease) in deferred revenue	210)	(9)	92)	(82)	(19)	—)
Adjusted net sales	16,120)	17,728)	16,307)	14,212)	14,844)	13,683)
Performance Ratio
MVA margin²	306.92%	498.49%	718.75%	536.10%	445.74%	326.67%
Benchmarks
MVA Margin, Competitors³
Procter & Gamble Co.	371.43%	354.79%	373.41%	378.64%	330.96%	—

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

¹ MVA. See details »

² 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 49,476 ÷ 16,120 = 306.92%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
MVA margin	The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value.	Estée Lauder Cos. Inc. MVA margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Estée Lauder Cos. Inc. (NYSE:EL)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin