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BHP Billiton Ltd (NYSE:BHP)
Enterprise Value
$212,314 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, BHP Billiton Ltd's enterprise value is $212,314 Mil. BHP Billiton Ltd's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $19,225 Mil. Therefore, BHP Billiton Ltd's EV/EBIT ratio for today is 11.04.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, BHP Billiton Ltd's enterprise value is $212,314 Mil. BHP Billiton Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $25,575 Mil. Therefore, BHP Billiton Ltd's EV/EBITDA ratio for today is 8.30.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, BHP Billiton Ltd's enterprise value is $212,314 Mil. BHP Billiton Ltd's revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $65,968 Mil. Therefore, BHP Billiton Ltd's EV/Revenue ratio for today is 3.22.


Definition

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

BHP Billiton Ltd's Enterprise Value for the fiscal year that ended in Jun. 2013 is calculated as

Enterprise Value (A: Jun. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=154179.3804+0+29847
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+4872+1371-6219
=184,050

BHP Billiton Ltd's Enterprise Value for the quarter that ended in Dec. 2013 is calculated as

Enterprise Value (Q: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=181991.7+0+31702
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+6333+5720-11099
=214,648

* 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.

BHP Billiton Ltd's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=212314.085/19225
=11.04

BHP Billiton Ltd's current Enterprise Value is $212,314 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $19,225 Mil.

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

BHP Billiton Ltd's EV/EBITDA for today is:

BHP Billiton Ltd's current Enterprise Value is $212,314 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $25,575 Mil.

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

BHP Billiton Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=212314.085/65968
=3.22

BHP Billiton Ltd's current Enterprise Value is $212,314 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $65,968 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.

BHP Billiton Ltd Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev 59,67091,665133,125180,166245,196157,851177,066258,390198,204184,050

BHP Billiton Ltd Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
ev 157,851221,962177,066259,945258,390210,724198,204240,762184,050214,648
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