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Brocade Communications Systems Inc (NAS:BRCD)
Enterprise Value
$2,643 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, Brocade Communications Systems Inc's enterprise value is $2,643 Mil. Brocade Communications Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2016 was $477 Mil. Therefore, Brocade Communications Systems Inc's EV/EBIT ratio for today is 5.54.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brocade Communications Systems Inc's enterprise value is $2,643 Mil. Brocade Communications Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2016 was $565 Mil. Therefore, Brocade Communications Systems Inc's EV/EBITDA ratio for today is 4.67.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Brocade Communications Systems Inc's enterprise value is $2,643 Mil. Brocade Communications Systems Inc's revenue for the trailing twelve months (TTM) ended in Jan. 2016 was $2,262 Mil. Therefore, Brocade Communications Systems Inc's EV/Revenue ratio for today is 1.17.


Definition

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

Brocade Communications Systems Inc's Enterprise Value for the fiscal year that ended in Oct. 2015 is calculated as

Enterprise Value (A: Oct. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=4313.0464+0+795.804
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-1440.882
=3,668

Brocade Communications Systems Inc's Enterprise Value for the quarter that ended in Jan. 2016 is calculated as

Enterprise Value (Q: Jan. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt
=3212.4288+0+798.103
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-1392.009
=2,619

* 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.

Brocade Communications Systems Inc's EV/EBIT for today is

Brocade Communications Systems Inc's current Enterprise Value is $2,643 Mil.
Brocade Communications Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2016 was 114.671 (Apr. 2015 ) + 120.796 (Jul. 2015 ) + 120.316 (Oct. 2015 ) + 121.635 (Jan. 2016 ) = $477 Mil.

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

Brocade Communications Systems Inc's EV/EBITDA for today is:

Brocade Communications Systems Inc's current Enterprise Value is $2,643 Mil.
Brocade Communications Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2016 was 135.343 (Apr. 2015 ) + 143.118 (Jul. 2015 ) + 142.554 (Oct. 2015 ) + 144.447 (Jan. 2016 ) = $565 Mil.

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

Brocade Communications Systems Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=2643.170/2261.505
=1.17

Brocade Communications Systems Inc's current Enterprise Value is $2,643 Mil.
Brocade Communications Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2016 was 546.575 (Apr. 2015 ) + 551.819 (Jul. 2015 ) + 588.827 (Oct. 2015 ) + 574.284 (Jan. 2016 ) = $2,262 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.

Brocade Communications Systems Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ev 1,6653,1962,0354,4863,5212,3372,3103,1803,9833,668

Brocade Communications Systems Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ev 3,1803,6813,5143,4333,9704,4364,1433,7443,6682,619
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