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Arch Capital Group Ltd (NAS:ACGL)
Enterprise Value
$8,637 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Arch Capital Group Ltd's enterprise value is $8,637 Mil. Arch Capital Group Ltd's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $983 Mil. Therefore, Arch Capital Group Ltd's EV/EBIT ratio for today is 8.79.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Arch Capital Group Ltd's enterprise value is $8,637 Mil. Arch Capital Group Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $1,027 Mil. Therefore, Arch Capital Group Ltd's EV/EBITDA ratio for today is 8.41.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Arch Capital Group Ltd's enterprise value is $8,637 Mil. Arch Capital Group Ltd's revenue for the trailing twelve months (TTM) ended in Mar. 2015 was $4,125 Mil. Therefore, Arch Capital Group Ltd's EV/Revenue ratio for today is 2.09.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Arch Capital Group Ltd's Enterprise Value for the fiscal year that ended in Dec. 2014 is calculated as

Enterprise Value (A: Dec. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=7527.567+325+900
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+769.081-1282.928
=8,239

Arch Capital Group Ltd's Enterprise Value for the quarter that ended in Mar. 2015 is calculated as

Enterprise Value (Q: Mar. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=7685.216+325+900
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+789.594-1326.044
=8,374

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

Arch Capital Group Ltd's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=8636.650/982.799
=8.79

Arch Capital Group Ltd's current Enterprise Value is $8,637 Mil.
Arch Capital Group Ltd's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 219.006 (Jun. 2014 ) + 229.71 (Sep. 2014 ) + 212.648 (Dec. 2014 ) + 321.435 (Mar. 2015 ) = $983 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Arch Capital Group Ltd's EV/EBITDA for today is:

Arch Capital Group Ltd's current Enterprise Value is $8,637 Mil.
Arch Capital Group Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 233.34 (Jun. 2014 ) + 233.862 (Sep. 2014 ) + 225.392 (Dec. 2014 ) + 334.171 (Mar. 2015 ) = $1,027 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Arch Capital Group Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=8636.650/4124.986
=2.09

Arch Capital Group Ltd's current Enterprise Value is $8,637 Mil.
Arch Capital Group Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 1035.66 (Jun. 2014 ) + 992.531 (Sep. 2014 ) + 1014.451 (Dec. 2014 ) + 1082.344 (Mar. 2015 ) = $4,125 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt, Cash and Cash Equivalents


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Arch Capital Group Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev 4473,1452,7093,8943,6303,9014,8825,5237,2918,239

Arch Capital Group Ltd Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev 5,5236,4206,1186,5217,2916,6787,8707,7478,3428,374
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