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GuruFocus has detected 7 Warning Signs with Chesapeake Energy Corp $CHK.
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Chesapeake Energy Corp (NYSE:CHK)
Enterprise Value
$16,321 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, Chesapeake Energy Corp's enterprise value is $16,321 Mil. Chesapeake Energy Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-4,154 Mil. Therefore, Chesapeake Energy Corp's EV/EBIT ratio for today is -3.93.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Chesapeake Energy Corp's enterprise value is $16,321 Mil. Chesapeake Energy Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $-3,047 Mil. Therefore, Chesapeake Energy Corp's EV/EBITDA ratio for today is -5.36.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Chesapeake Energy Corp's enterprise value is $16,321 Mil. Chesapeake Energy Corp's revenue for the trailing twelve months (TTM) ended in Dec. 2016 was $7,872 Mil. Therefore, Chesapeake Energy Corp's EV/Revenue ratio for today is 2.07.


Definition

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

Chesapeake Energy Corp's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=6229.4778+1771+9938
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+503+257-882
=17,816

Chesapeake Energy Corp's Enterprise Value for the quarter that ended in Dec. 2016 is calculated as

Enterprise Value (Q: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=6229.4778+1771+9938
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+503+257-882
=17,816

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Chesapeake Energy Corp's EV/EBIT for today is

Chesapeake Energy Corp's current Enterprise Value is $16,321 Mil.
Chesapeake Energy Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was -859 (Mar. 2016 ) + -1688 (Jun. 2016 ) + -1089 (Sep. 2016 ) + -518 (Dec. 2016 ) = $-4,154 Mil.

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

Chesapeake Energy Corp's EV/EBITDA for today is:

Chesapeake Energy Corp's current Enterprise Value is $16,321 Mil.
Chesapeake Energy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was -559 (Mar. 2016 ) + -1394 (Jun. 2016 ) + -809 (Sep. 2016 ) + -285 (Dec. 2016 ) = $-3,047 Mil.

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

Chesapeake Energy Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=16320.657/7872
=2.07

Chesapeake Energy Corp's current Enterprise Value is $16,321 Mil.
Chesapeake Energy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1953 (Mar. 2016 ) + 1622 (Jun. 2016 ) + 2276 (Sep. 2016 ) + 2021 (Dec. 2016 ) = $7,872 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Chesapeake Energy Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev 30,86220,03829,22831,63328,57328,39634,30624,77216,17317,816

Chesapeake Energy Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev 31,12624,77222,37621,25117,99716,17316,48916,26117,83317,816
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