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Brown-Forman Corp (NYSE:BF.B)
Enterprise Value
$20,904 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 $20,904 Mil. Brown-Forman Corp's operating income for the trailing twelve months (TTM) ended in Jul. 2014 was $975 Mil. Therefore, Brown-Forman Corp's EV/EBIT ratio for today is 21.44.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brown-Forman Corp's enterprise value is $20,904 Mil. Brown-Forman Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2014 was $1,027 Mil. Therefore, Brown-Forman Corp's EV/EBITDA ratio for today is 20.35.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Brown-Forman Corp's enterprise value is $20,904 Mil. Brown-Forman Corp's revenue for the trailing twelve months (TTM) ended in Jul. 2014 was $3,009 Mil. Therefore, Brown-Forman Corp's EV/Revenue ratio for today is 6.95.


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. 2014 is calculated as

Enterprise Value (A: Apr. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=19151.6312+0+997
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+8+0-437
=19,720

Brown-Forman Corp's Enterprise Value for the quarter that ended in Jul. 2014 is calculated as

Enterprise Value (Q: Jul. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=18824.295+0+998
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+13+0-460
=19,375

* 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

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=20903.600/975
=21.44

Brown-Forman Corp's current Enterprise Value is $20,904 Mil.
Brown-Forman Corp's Operating Income for the trailing twelve months (TTM) ended in Jul. 2014 was 311 (Oct. 2013 ) + 255 (Jan. 2014 ) + 188 (Apr. 2014 ) + 221 (Jul. 2014 ) = $975 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 $20,904 Mil.
Brown-Forman Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2014 was 324 (Oct. 2013 ) + 267 (Jan. 2014 ) + 202 (Apr. 2014 ) + 234 (Jul. 2014 ) = $1,027 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)
=20903.600/3009
=6.95

Brown-Forman Corp's current Enterprise Value is $20,904 Mil.
Brown-Forman Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2014 was 833 (Oct. 2013 ) + 782 (Jan. 2014 ) + 689 (Apr. 2014 ) + 705 (Jul. 2014 ) = $3,009 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

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev 7,0969,0528,6889,0907,6449,01710,61112,44015,86519,720

Brown-Forman Corp Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ev 12,44013,45413,81614,69515,86516,28916,37017,14119,72019,375
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