Switch to:
Computer Sciences Corporation (NYSE:CSC)
Enterprise Value
$8,790 Mil (As of Dec. 2013)

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, Computer Sciences Corporation's enterprise value is $9,436 Mil. Computer Sciences Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $987 Mil. Therefore, Computer Sciences Corporation's EV/EBIT ratio for today is 9.56.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Computer Sciences Corporation's enterprise value is $9,436 Mil. Computer Sciences Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,936 Mil. Therefore, Computer Sciences Corporation's EV/EBITDA ratio for today is 4.87.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Computer Sciences Corporation's enterprise value is $9,436 Mil. Computer Sciences Corporation's revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $13,234 Mil. Therefore, Computer Sciences Corporation's EV/Revenue ratio for today is 0.71.


Definition

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

Computer Sciences Corporation's Enterprise Value for the fiscal year that ended in Mar. 2013 is calculated as

Enterprise Value (A: Mar. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=7392.3768+0+2498
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+234+25-2054
=8,095

Computer Sciences Corporation'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
=8226.0948+0+2184
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+637+27-2284
=8,790

* 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.

Computer Sciences Corporation's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=9435.893/987
=9.56

Computer Sciences Corporation's current Enterprise Value is $9,436 Mil.
Computer Sciences Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 227 (Mar. 2013 ) + 240 (Jun. 2013 ) + 270 (Sep. 2013 ) + 250 (Dec. 2013 ) = $987 Mil.

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

Computer Sciences Corporation's EV/EBITDA for today is:

Computer Sciences Corporation's current Enterprise Value is $9,436 Mil.
Computer Sciences Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 428 (Mar. 2013 ) + 500 (Jun. 2013 ) + 498 (Sep. 2013 ) + 510 (Dec. 2013 ) = $1,936 Mil.

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

Computer Sciences Corporation's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9435.893/13234
=0.71

Computer Sciences Corporation's current Enterprise Value is $9,436 Mil.
Computer Sciences Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 3559 (Mar. 2013 ) + 3260 (Jun. 2013 ) + 3187 (Sep. 2013 ) + 3228 (Dec. 2013 ) = $13,234 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.

Computer Sciences Corporation Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
ev 9,3229,14010,5319,4869,2487,5189,3938,3566,3498,095

Computer Sciences Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev 6,5075,5626,3495,6236,5636,6018,0957,2708,2838,790
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide