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Adobe Systems Inc (NAS:ADBE)
Enterprise Value
$51,151 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, Adobe Systems Inc's enterprise value is $51,151 Mil. Adobe Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was $1,220 Mil. Therefore, Adobe Systems Inc's EV/EBIT ratio for today is 41.91.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Adobe Systems Inc's enterprise value is $51,151 Mil. Adobe Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2016 was $1,560 Mil. Therefore, Adobe Systems Inc's EV/EBITDA ratio for today is 32.79.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Adobe Systems Inc's enterprise value is $51,151 Mil. Adobe Systems Inc's revenue for the trailing twelve months (TTM) ended in May. 2016 was $5,306 Mil. Therefore, Adobe Systems Inc's EV/Revenue ratio for today is 9.64.


Definition

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

Adobe Systems Inc's Enterprise Value for the fiscal year that ended in Nov. 2015 is calculated as

Enterprise Value (A: Nov. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=45529.7026+0+1907.231
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0+0-3988.084
=43,449

Adobe Systems Inc's Enterprise Value for the quarter that ended in May. 2016 is calculated as

Enterprise Value (Q: May. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=49632.5459+0+1918.389
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0+0-4318.408
=47,233

* 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.

Adobe Systems Inc's EV/EBIT for today is

Adobe Systems Inc's current Enterprise Value is $51,151 Mil.
Adobe Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was 249.138 (Aug. 2015 ) + 313.455 (Nov. 2015 ) + 310.776 (Feb. 2016 ) + 347.004 (May. 2016 ) = $1,220 Mil.

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

Adobe Systems Inc's EV/EBITDA for today is:

Adobe Systems Inc's current Enterprise Value is $51,151 Mil.
Adobe Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 336.688 (Aug. 2015 ) + 399.814 (Nov. 2015 ) + 391.976 (Feb. 2016 ) + 431.465 (May. 2016 ) = $1,560 Mil.

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

Adobe Systems Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=51151.281/5306.216
=9.64

Adobe Systems Inc's current Enterprise Value is $51,151 Mil.
Adobe Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 1217.768 (Aug. 2015 ) + 1306.404 (Nov. 2015 ) + 1383.335 (Feb. 2016 ) + 1398.709 (May. 2016 ) = $5,306 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 & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

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

Adobe Systems Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
ev 21,30222,08510,51617,43013,19712,11515,07226,51834,42943,449

Adobe Systems Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
ev 32,59030,26933,83734,42938,27937,90037,42143,44940,25247,233
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