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Brady Corp (NYSE:BRC)
Enterprise Value
$1,488 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, Brady Corp's enterprise value is $1,488 Mil. Brady Corp's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $-44 Mil. Therefore, Brady Corp's EV/EBIT ratio for today is -33.88.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brady Corp's enterprise value is $1,488 Mil. Brady Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $2 Mil. Therefore, Brady Corp's EV/EBITDA ratio for today is 791.19.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Brady Corp's enterprise value is $1,488 Mil. Brady Corp's revenue for the trailing twelve months (TTM) ended in Oct. 2014 was $1,228 Mil. Therefore, Brady Corp's EV/Revenue ratio for today is 1.21.


Definition

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

Brady Corp's Enterprise Value for the fiscal year that ended in Jul. 2014 is calculated as

Enterprise Value (A: Jul. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=1344.0708+0+159.296
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+103.936+0-81.834
=1,525

Brady Corp's Enterprise Value for the quarter that ended in Oct. 2014 is calculated as

Enterprise Value (Q: Oct. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=1196.175+0+153.476
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+137.222+0-116.474
=1,370

* 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.

Brady Corp's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=1488.224/-43.927
=-33.88

Brady Corp's current Enterprise Value is $1,488 Mil.
Brady Corp's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 18.346 (Jan. 2014 ) + 26.767 (Apr. 2014 ) + -116.013 (Jul. 2014 ) + 26.973 (Oct. 2014 ) = $-44 Mil.

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

Brady Corp's EV/EBITDA for today is:

Brady Corp's current Enterprise Value is $1,488 Mil.
Brady Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 30.065 (Jan. 2014 ) + 39.079 (Apr. 2014 ) + -104.682 (Jul. 2014 ) + 37.419 (Oct. 2014 ) = $2 Mil.

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

Brady Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1488.224/1227.744
=1.21

Brady Corp's current Enterprise Value is $1,488 Mil.
Brady Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 291.194 (Jan. 2014 ) + 309.577 (Apr. 2014 ) + 316.733 (Jul. 2014 ) + 310.24 (Oct. 2014 ) = $1,228 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.

Brady Corp Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
ev 1,7551,8842,2402,1951,7481,5931,5761,3781,9581,525

Brady Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev 1,3781,5722,0852,0061,9581,7321,6421,5481,5251,370
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