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, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Alcatel-Lucent's Enterprise Value is $10,506 Mil.
Alcatel-Lucent's EBIT for the trailing twelve months (TTM) ended in Jun. 2016 was $-1,280 Mil. Therefore, Alcatel-Lucent's EV-to-EBIT ratio for today is -8.21.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Alcatel-Lucent's Enterprise Value is $10,506 Mil.
Alcatel-Lucent's EBITDA for the trailing twelve months (TTM) ended in Jun. 2016 was $-1,108 Mil. Therefore, Alcatel-Lucent's EV-to-EBITDA ratio for today is -9.48.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Alcatel-Lucent's Enterprise Value is $10,506 Mil.
Alcatel-Lucent's Revenue for the trailing twelve months (TTM) ended in Jun. 2016 was $10,555 Mil. Therefore, Alcatel-Lucent's EV-to-Revenue ratio for today is 1.00.
Alcatel-Lucent Enterprise Value Historical Data
The historical data trend for Alcatel-Lucent's Enterprise Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Alcatel-Lucent's Enterprise Value
For the Communication Equipment subindustry, Alcatel-Lucent's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alcatel-Lucent's Enterprise Value Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Alcatel-Lucent's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Alcatel-Lucent's Enterprise Value falls into.
Alcatel-Lucent Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Alcatel-Lucent's Enterprise Value for the fiscal year that ended in Dec. 2015 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alcatel-Lucent (NYSE:ALU) Enterprise Value 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-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Alcatel-Lucent's current Enterprise Value is $10,506 Mil.
Alcatel-Lucent's EBIT for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1,280 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Alcatel-Lucent's current Enterprise Value is $10,506 Mil.
Alcatel-Lucent's EBITDA for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1,108 Mil.
Alcatel-Lucent's current Enterprise Value is $10,506 Mil.
Alcatel-Lucent's Revenue for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $10,555 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alcatel-Lucent Enterprise Value Related Terms
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Alcatel-Lucent (Alcatel-Lucent) Business Description
Alcatel-Lucent SA was incorporated on June 18, 1898. The Company is engaged in designing, manufacturing, operations and sales of equipment, material and software related to domestic, industrial, civil, military or other applications concerning electricity, telecommunications, computers, electronics, aerospace industry, nuclear energy, metallurgy, and, in general, of all the means of production or transmission of energy or communication. The Company's core Networking segment includes three business divisions: IP Routing, IP Transport and IP Platforms. The IP ROUTING focus is on the intelligent IP router market and emerging Software Defined Networking (SDN) markets and related professional services. In IP TRANSPORT segment company designs, manufactures and markets optical networking equipment to transport information over fiber optic connections over long distances on land or under sea, as well as for short distances in metropolitan and regional areas. The portfolio also includes related professional services and microwave wireless transmission equipment. In IP PLATFORMS, the Company offers software and services to service providers that allow them to meet the market evolution needs of mobile and fixed networks. The Company's access segment includes four business divisions: WIRELESS are committed to a wireless access portfolio that is suited to the operators that are moving to 4G/LTE quickly and decisively. FIXED ACCESS IP-based fixed access products and related professional services provides support for both DSL and fiber, allowing service providers to extend Ultra-Broadband access to the customer's premise regardless of technology and to seamlessly combine copper and fiber access technologies and FTTx deployment models to achieve the fastest return-on-investment and time-to-market. In LICENSING the Intellectual Property Business Group works to monetize the patent portfolio through licensing and patent sales while also maintaining and prosecuting patents. The managed services portfolio includes Build-Operate-Manage-Transfer (BOMT) Solutions, Operations Transformation Solutions, and Network Operations Services. These services can be delivered across a wide array of network technologies including Network Access (FTTx), Next generation wireless (LTE, Small Cells, 4G), and IP Networks. The Company's Other segment includes Enterprise and Government businesses to provide end-to-end products, solutions and services for small, medium, large and extra-large companies to improve conversations and collaboration across employees, customers and partners. The Company sells all of its products and services to the world's telecommunications service providers through its direct sales force. The Company's competitors include Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, Nokia Solutions and Networks (NSN), Samsung, Adtran, Calix, Ciena, Juniper, Ericsson and Huawei.
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