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Dell Inc (NAS:DELL)
Enterprise Value
$19,365 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, Dell Inc's enterprise value is $19,365 Mil. Dell Inc's operating income for the trailing twelve months (TTM) ended in Jul. 2013 was $1,785 Mil. Therefore, Dell Inc's EV/EBIT ratio for today is 10.85.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Dell Inc's enterprise value is $19,365 Mil. Dell Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2013 was $3,050 Mil. Therefore, Dell Inc's EV/EBITDA ratio for today is 6.35.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Dell Inc's enterprise value is $19,365 Mil. Dell Inc's revenue for the trailing twelve months (TTM) ended in Jul. 2013 was $56,623 Mil. Therefore, Dell Inc's EV/Revenue ratio for today is 0.34.


Definition

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

Dell Inc's Enterprise Value for the fiscal year that ended in Jan. 2013 is calculated as

Enterprise Value (A: Jan. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=23236.2+0+5242
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+3843+21-12777
=19,565

Dell Inc's Enterprise Value for the quarter that ended in Jul. 2013 is calculated as

Enterprise Value (Q: Jul. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=22332.24+0+4075
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2736+0-11828
=17,315

* 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.

Dell Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=19364.976/1785
=10.85

Dell Inc's current Enterprise Value is $19,365 Mil.
Dell Inc's Operating Income for the trailing twelve months (TTM) ended in Jul. 2013 was 589 (Oct. 2012 ) + 698 (Jan. 2013 ) + 226 (Apr. 2013 ) + 272 (Jul. 2013 ) = $1,785 Mil.

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

Dell Inc's EV/EBITDA for today is:

Dell Inc's current Enterprise Value is $19,365 Mil.
Dell Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2013 was 883 (Oct. 2012 ) + 1019 (Jan. 2013 ) + 549 (Apr. 2013 ) + 599 (Jul. 2013 ) = $3,050 Mil.

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

Dell Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=19364.976/56623
=0.34

Dell Inc's current Enterprise Value is $19,365 Mil.
Dell Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2013 was 13721 (Oct. 2012 ) + 14314 (Jan. 2013 ) + 14074 (Apr. 2013 ) + 14514 (Jul. 2013 ) = $56,623 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.

Dell Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
ev 82,93297,93863,40045,46337,64511,78618,38217,36026,36319,565

Dell Inc Quarterly Data

Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13
ev 22,88022,99323,32425,27824,32417,37613,87919,48619,96117,315
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