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Apache Corporation (NYSE:APA)
Enterprise Value
$31,911 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, Apache Corporation's enterprise value is $31,911 Mil. Apache Corporation's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $-11,670 Mil. Therefore, Apache Corporation's EV/EBIT ratio for today is -2.73.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Apache Corporation's enterprise value is $31,911 Mil. Apache Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $5,689 Mil. Therefore, Apache Corporation's EV/EBITDA ratio for today is 5.61.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Apache Corporation's enterprise value is $31,911 Mil. Apache Corporation's revenue for the trailing twelve months (TTM) ended in Mar. 2015 was $11,994 Mil. Therefore, Apache Corporation's EV/Revenue ratio for today is 2.66.


Definition

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

Apache Corporation'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
=23595.255+0+11245
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+2200-769
=36,271

Apache Corporation'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
=22733.5506+0+9675
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2598+2194-229
=36,972

* 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.

Apache Corporation's EV/EBIT for today is

Apache Corporation's current Enterprise Value is $31,911 Mil.
Apache Corporation's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1013 (Jun. 2014 ) + -176 (Sep. 2014 ) + -5065 (Dec. 2014 ) + -7442 (Mar. 2015 ) = $-11,670 Mil.

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

Apache Corporation's EV/EBITDA for today is:

Apache Corporation's current Enterprise Value is $31,911 Mil.
Apache Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 2470 (Jun. 2014 ) + 2659 (Sep. 2014 ) + -405 (Dec. 2014 ) + 965 (Mar. 2015 ) = $5,689 Mil.

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

Apache Corporation's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=31910.720/11994
=2.66

Apache Corporation's current Enterprise Value is $31,911 Mil.
Apache Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 3484 (Jun. 2014 ) + 3740 (Sep. 2014 ) + 2952 (Dec. 2014 ) + 1818 (Mar. 2015 ) = $11,994 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.

Apache Corporation Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev 24,62525,68939,97227,98937,73054,82642,94244,15643,82836,271

Apache Corporation Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev 44,15643,69246,46044,06443,82842,48149,75847,95236,27036,972
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