Switch to:
Airgas Inc (NYSE:ARG)
Enterprise Value
$12,940 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, Airgas Inc's enterprise value is $12,940 Mil. Airgas Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $592 Mil. Therefore, Airgas Inc's EV/EBIT ratio for today is 21.87.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Airgas Inc's enterprise value is $12,940 Mil. Airgas Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $945 Mil. Therefore, Airgas Inc's EV/EBITDA ratio for today is 13.70.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Airgas Inc's enterprise value is $12,940 Mil. Airgas Inc's revenue for the trailing twelve months (TTM) ended in Mar. 2016 was $5,314 Mil. Therefore, Airgas Inc's EV/Revenue ratio for today is 2.44.


Definition

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

Airgas Inc's Enterprise Value for the fiscal year that ended in Mar. 2016 is calculated as

Enterprise Value (A: Mar. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=10288.7296+0+1954.82
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+633.365+0-55.809
=12,821

Airgas Inc'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
=10288.7296+0+1954.82
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+633.365+0-55.809
=12,821

* 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.

Airgas Inc's EV/EBIT for today is

Airgas Inc's current Enterprise Value is $12,940 Mil.
Airgas Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 152.578 (Jun. 2015 ) + 170.145 (Sep. 2015 ) + 125.587 (Dec. 2015 ) + 143.507 (Mar. 2016 ) = $592 Mil.

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

Airgas Inc's EV/EBITDA for today is:

Airgas Inc's current Enterprise Value is $12,940 Mil.
Airgas Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 238.768 (Jun. 2015 ) + 258.017 (Sep. 2015 ) + 214.296 (Dec. 2015 ) + 233.483 (Mar. 2016 ) = $945 Mil.

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

Airgas Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=12940.226/5313.777
=2.44

Airgas Inc's current Enterprise Value is $12,940 Mil.
Airgas Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 1349.71 (Jun. 2015 ) + 1374.569 (Sep. 2015 ) + 1295.414 (Dec. 2015 ) + 1294.084 (Mar. 2016 ) = $5,314 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.

Airgas Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
ev 4,7135,3024,4646,7587,0838,9379,76610,31710,27012,821

Airgas Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev 10,74410,31710,49410,63010,99310,27010,2579,13512,65312,821
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK