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Brown-Forman Corp (NYSE:BF.B)
Enterprise Value
$25,246 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, Brown-Forman Corp's enterprise value is $25,246 Mil. Brown-Forman Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was $1,035 Mil. Therefore, Brown-Forman Corp's EV/EBIT ratio for today is 24.39.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brown-Forman Corp's enterprise value is $25,246 Mil. Brown-Forman Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2015 was $1,086 Mil. Therefore, Brown-Forman Corp's EV/EBITDA ratio for today is 23.25.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Brown-Forman Corp's enterprise value is $25,246 Mil. Brown-Forman Corp's revenue for the trailing twelve months (TTM) ended in Jul. 2015 was $3,128 Mil. Therefore, Brown-Forman Corp's EV/Revenue ratio for today is 8.07.


Definition

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

Brown-Forman Corp's Enterprise Value for the fiscal year that ended in Apr. 2015 is calculated as

Enterprise Value (A: Apr. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=18831.001+0+748
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+440+0-370
=19,649

Brown-Forman Corp's Enterprise Value for the quarter that ended in Jul. 2015 is calculated as

Enterprise Value (Q: Jul. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=22618.44558+0+1229
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+263+0-494
=23,616

* 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.

Brown-Forman Corp's EV/EBIT for today is

Brown-Forman Corp's current Enterprise Value is $25,246 Mil.
Brown-Forman Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was 303 (Oct. 2014 ) + 272 (Jan. 2015 ) + 233 (Apr. 2015 ) + 227 (Jul. 2015 ) = $1,035 Mil.

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

Brown-Forman Corp's EV/EBITDA for today is:

Brown-Forman Corp's current Enterprise Value is $25,246 Mil.
Brown-Forman Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2015 was 315 (Oct. 2014 ) + 285 (Jan. 2015 ) + 246 (Apr. 2015 ) + 240 (Jul. 2015 ) = $1,086 Mil.

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

Brown-Forman Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=25246.199/3128
=8.07

Brown-Forman Corp's current Enterprise Value is $25,246 Mil.
Brown-Forman Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2015 was 877 (Oct. 2014 ) + 813 (Jan. 2015 ) + 739 (Apr. 2015 ) + 699 (Jul. 2015 ) = $3,128 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.

Brown-Forman Corp Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
ev 9,0628,6899,0907,6449,01810,61212,44115,86519,72019,649

Brown-Forman Corp Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
ev 15,86516,28916,37017,14119,72019,05120,66819,48319,64923,616
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