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Cisco Systems Inc (NAS:CSCO)
Enterprise Value
$84,361 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, Cisco Systems Inc's enterprise value is $84,361 Mil. Cisco Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2015 was $12,564 Mil. Therefore, Cisco Systems Inc's EV/EBIT ratio for today is 6.71.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Cisco Systems Inc's enterprise value is $84,361 Mil. Cisco Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2015 was $14,914 Mil. Therefore, Cisco Systems Inc's EV/EBITDA ratio for today is 5.66.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Cisco Systems Inc's enterprise value is $84,361 Mil. Cisco Systems Inc's revenue for the trailing twelve months (TTM) ended in Oct. 2015 was $49,598 Mil. Therefore, Cisco Systems Inc's EV/Revenue ratio for today is 1.70.


Definition

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

Cisco Systems Inc's Enterprise Value for the fiscal year that ended in Jul. 2015 is calculated as

Enterprise Value (A: Jul. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=144515.7+0+21457
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+3897+9-60416
=109,463

Cisco Systems Inc's Enterprise Value for the quarter that ended in Oct. 2015 is calculated as

Enterprise Value (Q: Oct. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=146615.7+0+21594
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+3027+8-59107
=112,138

* 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.

Cisco Systems Inc's EV/EBIT for today is

Cisco Systems Inc's current Enterprise Value is $84,361 Mil.
Cisco Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2015 was 3012 (Jan. 2015 ) + 3174 (Apr. 2015 ) + 3082 (Jul. 2015 ) + 3296 (Oct. 2015 ) = $12,564 Mil.

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

Cisco Systems Inc's EV/EBITDA for today is:

Cisco Systems Inc's current Enterprise Value is $84,361 Mil.
Cisco Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2015 was 3637 (Jan. 2015 ) + 3741 (Apr. 2015 ) + 3733 (Jul. 2015 ) + 3803 (Oct. 2015 ) = $14,914 Mil.

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

Cisco Systems Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=84361.044/49598
=1.70

Cisco Systems Inc's current Enterprise Value is $84,361 Mil.
Cisco Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2015 was 11936 (Jan. 2015 ) + 12137 (Apr. 2015 ) + 12843 (Jul. 2015 ) + 12682 (Oct. 2015 ) = $49,598 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.

Cisco Systems Inc Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
ev 97,058160,239110,294102,652105,90259,06752,130103,51497,628109,463

Cisco Systems Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
ev 103,51488,75683,83288,66397,62893,889102,187113,426109,463112,138
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