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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- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
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MVA
Monsanto Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Monsanto
- The market value showed a generally positive trend from 2012 to 2017, starting at 50,045 million USD in 2012 and increasing to 62,433 million USD in 2017. There was a notable increase each year from 2012 to 2014, reaching a peak of 62,932 million USD in 2014. A decline followed in 2015 to 50,387 million USD, but the market value rebounded in the subsequent years, reaching the second highest point in 2017.
- Invested capital
- Invested capital experienced a steady upward trend from 2012 through 2015, growing from 14,553 million USD to 18,327 million USD. However, in 2016, invested capital decreased to 15,963 million USD and then slightly increased to 16,366 million USD in 2017. This indicates some reduction or restructuring of capital investment after 2015.
- Market value added (MVA)
- MVA followed a pattern similar to that of the market value. It rose consistently from 35,492 million USD in 2012 to a high of 46,672 million USD in 2014. A significant dip occurred in 2015, falling to 32,060 million USD, reflective of the decline in market value. MVA then showed a recovery trend in 2016 and 2017, increasing to 46,067 million USD by 2017. This recovery suggests improvements in market perception relative to invested capital.
MVA Spread Ratio
Monsanto Co., MVA spread ratio calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| lululemon athletica inc. | |||||||
| Nike Inc. | |||||||
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 MVA. See details »
2 Invested capital. See details »
3 2017 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's market value added (MVA), invested capital, and MVA spread ratio over the six-year period from 2012 to 2017.
- Market Value Added (MVA)
- MVA demonstrates an overall growth trajectory with fluctuations across the years. Starting at 35,492 million USD in 2012, it increased to a peak of 46,672 million USD in 2014. However, there was a significant decline in 2015 to 32,060 million USD, followed by a recovery over the next two years, culminating at 46,067 million USD in 2017. This pattern suggests intermittently volatile market valuation performance but with a strong rebound capability by the end of the period.
- Invested Capital
- The invested capital shows a generally upward trend from 14,553 million USD in 2012 to 18,327 million USD in 2015, indicating increased capital deployment during this interval. However, it decreased notably in 2016 to 15,963 million USD and then slightly increased again in 2017 to 16,366 million USD. This fluctuation could imply a period of capital adjustment or reallocation post-2015.
- MVA Spread Ratio
- The MVA spread ratio, representing the percentage difference between market value and invested capital, exhibits a pattern aligned with the MVA and capital changes. It was high in the initial years, rising from 243.87% in 2012 to 287.04% in 2014, indicating strong value generation relative to invested capital. The ratio then dropped substantially to 174.93% in 2015, corresponding with the decline in MVA and rise in invested capital. Subsequently, it recovered to 281.47% by 2017, underscoring an improved efficiency in value creation during the latter part of the period.
Overall, the data indicates that despite a notable downturn in 2015, the company managed to restore and enhance its market value added and efficiency relative to invested capital by 2017. The trends imply strategic capital management and effective value creation efforts across the analyzed timeframe.
MVA Margin
Monsanto Co., MVA margin calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred revenues | |||||||
| Adjusted net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| lululemon athletica inc. | |||||||
| Nike Inc. | |||||||
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 MVA. See details »
2 2017 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data over the six-year period reveal notable trends in market value added (MVA), adjusted net sales, and MVA margin.
- Market value added (MVA)
- The MVA shows a general upward trend from 2012 to 2017, rising from 35,492 million US dollars in 2012 to 46,067 million US dollars in 2017. However, there is a significant drop in 2015 to 32,060 million, which interrupts this upward momentum. Following this dip, the MVA rebounds strongly in 2016 and 2017, reaching its highest value at the end of the period.
- Adjusted net sales
- Adjusted net sales increase steadily from 13,435 million in 2012 to a peak of 15,685 million in 2014. After 2014, a gradual decline occurs, reaching a low of 13,688 million in 2016 before recovering slightly to 14,878 million in 2017. This indicates some volatility in sales after a period of consistent growth.
- MVA margin
- The MVA margin parallels the trends observed in MVA. It increases from 264.17% in 2012 to a peak of 297.56% in 2014 before dropping sharply to 214.69% in 2015. Subsequently, the margin improves to 283.1% in 2016 and reaches its highest level of 309.63% in 2017. This pattern suggests fluctuations in value creation efficiency relative to sales, with a temporary weakening in 2015 followed by robust improvement.
Overall, the data indicate solid growth in market value and value creation margins despite some fluctuations. The year 2015 marks a noticeable downturn in both MVA and MVA margin, as well as adjusted net sales, followed by recovery and strengthening in the last two years. This suggests periods of operational or market challenges in 2015, with effective corrective responses thereafter.