MLL: cumulative earnings relative to market capitalization
How MLL differs from IVR, IVR2 and the price-to-earnings ratio.
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What MLL compares
In the Brazilian methodology, MLL = cumulative net earnings attributable to controlling shareholders over the latest 16 quarters ÷ market capitalization. It preserves the historical measure previously labeled IVR2. Cumulative earnings are the numerator.
Example and difference from P/E
Hypothetical example: cumulative earnings of 80 million and market capitalization of 125 million produce MLL of 0.64. This is not P/E: the division is inverted and the earnings window spans 16 quarters rather than one year.
MLL above 1 means historical earnings over that window exceed market capitalization. It does not guarantee capital recovery, future returns or distribution of those earnings as dividends.
Three different reference points
IVR combines equity, 16-quarter earnings and a debt adjustment. Brazilian IVR2 uses 20 quarters and a different debt adjustment. MLL focuses on 16-quarter earnings. Rank changes between indexes may reflect those different references.
Nonrecurring results, losses and changes in share counts require further investigation. Check reporting periods, data quality and earnings trends before comparing companies.
References and transparency
Ranking Invest is responsible for its proprietary formulas. Use primary sources to verify financial statements; they do not endorse the indexes.