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Adobe Systems Inc (NAS:ADBE)
Enterprise Value
$31,856 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 $31,856 Mil. Adobe Systems Inc's operating income for the trailing twelve months (TTM) ended in May. 2014 was $427 Mil. Therefore, Adobe Systems Inc's EV/EBIT ratio for today is 74.57.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Adobe Systems Inc's enterprise value is $31,856 Mil. Adobe Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $754 Mil. Therefore, Adobe Systems Inc's EV/EBITDA ratio for today is 42.27.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Adobe Systems Inc's enterprise value is $31,856 Mil. Adobe Systems Inc's revenue for the trailing twelve months (TTM) ended in May. 2014 was $4,105 Mil. Therefore, Adobe Systems Inc's EV/Revenue ratio for today is 7.76.


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. 2013 is calculated as

Enterprise Value (A: Nov. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=28383.7542+0+1499.297
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-3173.752
=26,709

Adobe Systems Inc's Enterprise Value for the quarter that ended in May. 2014 is calculated as

Enterprise Value (Q: May. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=32123.4942+0+896.551
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-3330.211
=29,690

* 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

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=31855.759/427.194
=74.57

Adobe Systems Inc's current Enterprise Value is $31,856 Mil.
Adobe Systems Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 110.354 (Aug. 2013 ) + 102.836 (Nov. 2013 ) + 78.746 (Feb. 2014 ) + 135.258 (May. 2014 ) = $427 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 $31,856 Mil.
Adobe Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 192.182 (Aug. 2013 ) + 186.342 (Nov. 2013 ) + 159.118 (Feb. 2014 ) + 216.027 (May. 2014 ) = $754 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)
=31855.759/4105.146
=7.76

Adobe Systems Inc's current Enterprise Value is $31,856 Mil.
Adobe Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 995.119 (Aug. 2013 ) + 1041.699 (Nov. 2013 ) + 1000.12 (Feb. 2014 ) + 1068.208 (May. 2014 ) = $4,105 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.

Adobe Systems Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
ev 13,13814,41321,14622,18610,62817,43013,18812,10615,06026,709

Adobe Systems Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev 14,97813,84113,72315,06017,45619,22621,29626,70931,84629,690
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