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A.O. Smith Corp (NYSE:AOS)
Enterprise Value
$7,787 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, A.O. Smith Corp's enterprise value is $7,787 Mil. A.O. Smith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $431 Mil. Therefore, A.O. Smith Corp's EV/EBIT ratio for today is 18.09.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, A.O. Smith Corp's enterprise value is $7,787 Mil. A.O. Smith Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $494 Mil. Therefore, A.O. Smith Corp's EV/EBITDA ratio for today is 15.76.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, A.O. Smith Corp's enterprise value is $7,787 Mil. A.O. Smith Corp's revenue for the trailing twelve months (TTM) ended in Mar. 2016 was $2,555 Mil. Therefore, A.O. Smith Corp's EV/Revenue ratio for today is 3.05.


Definition

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

A.O. Smith Corp'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 & Capital Lease Obligation
=5043.054+0+210.1
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+13.7+0-541.9
=4,725

A.O. Smith Corp's Enterprise Value for the quarter that ended in Mar. 2016 is calculated as

Enterprise Value (Q: Mar. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=6711.4645+0+274.1
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+13.2+0-640.8
=6,358

* 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.

A.O. Smith Corp's EV/EBIT for today is

A.O. Smith Corp's current Enterprise Value is $7,787 Mil.
A.O. Smith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 105.7 (Jun. 2015 ) + 108.8 (Sep. 2015 ) + 110.7 (Dec. 2015 ) + 105.3 (Mar. 2016 ) = $431 Mil.

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

A.O. Smith Corp's EV/EBITDA for today is:

A.O. Smith Corp's current Enterprise Value is $7,787 Mil.
A.O. Smith Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 121.7 (Jun. 2015 ) + 124.5 (Sep. 2015 ) + 126.4 (Dec. 2015 ) + 121.5 (Mar. 2016 ) = $494 Mil.

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

A.O. Smith Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=7787.239/2554.9
=3.05

A.O. Smith Corp's current Enterprise Value is $7,787 Mil.
A.O. Smith Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 653.5 (Jun. 2015 ) + 625.1 (Sep. 2015 ) + 639.4 (Dec. 2015 ) + 636.9 (Mar. 2016 ) = $2,555 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.

A.O. Smith Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev 1,5661,4111,1951,3621,8871,6742,6964,6274,7256,342

A.O. Smith Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ev 4,1434,4814,2394,7255,6036,1675,4866,3426,3580
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