February 2, 2022
The YDC Data Monetization Index (DMI) for major retailers is in the range of 3.5% to 4.5%. Deere & Company and Caterpillar have YDC DMI’s of 3.60% and 4.45% respectively driven by the valuation of telematics data.
A higher YDC DMI is generally preferable across companies and industries. By way of reference, Google’s DMI is 93 percent as we will discuss in a separate blog.
- YDC Data Monetization Index (DMI) = Data Valuation / Enterprise Value
- Data Valuation is the sum of the valuation of covered datasets including telematics, customers, dealers, reference data, supply chain, employees, real estate, equipment and regulatory compliance
- Enterprise Value = Equity Value + Long Term Debt – Cash, a key metric used in the investment community
- Telematics data is the information generated by agricultural, mining and construction equipment
The data valuation relies exclusively on publicly-available data sources such as SEC filings, industry research and comparable transactions from December 2021. The total value of data will likely be higher with the coverage of additional datasets.