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Emerson Electric Co (NYSE:EMR)
Enterprise Value
$50,922 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, Emerson Electric Co's enterprise value is $50,922 Mil. Emerson Electric Co's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $4,337 Mil. Therefore, Emerson Electric Co's EV/EBIT ratio for today is 11.74.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Emerson Electric Co's enterprise value is $50,922 Mil. Emerson Electric Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $4,198 Mil. Therefore, Emerson Electric Co's EV/EBITDA ratio for today is 12.13.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Emerson Electric Co's enterprise value is $50,922 Mil. Emerson Electric Co's revenue for the trailing twelve months (TTM) ended in Mar. 2014 was $24,574 Mil. Therefore, Emerson Electric Co'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.

Emerson Electric Co's Enterprise Value for the fiscal year that ended in Sep. 2013 is calculated as

Enterprise Value (A: Sep. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=46230.091+0+4055
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1587+133-3275
=48,730

Emerson Electric Co's Enterprise Value for the quarter that ended in Mar. 2014 is calculated as

Enterprise Value (Q: Mar. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=46959.732+0+3836
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2661+48-2724
=50,781

* 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.

Emerson Electric Co's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=50921.933/4337
=11.74

Emerson Electric Co's current Enterprise Value is $50,922 Mil.
Emerson Electric Co's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 669 (Jun. 2013 ) + 1875 (Sep. 2013 ) + 792 (Dec. 2013 ) + 1001 (Mar. 2014 ) = $4,337 Mil.

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

Emerson Electric Co's EV/EBITDA for today is:

Emerson Electric Co's current Enterprise Value is $50,922 Mil.
Emerson Electric Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 768 (Jun. 2013 ) + 1446 (Sep. 2013 ) + 906 (Dec. 2013 ) + 1078 (Mar. 2014 ) = $4,198 Mil.

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

Emerson Electric Co's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=50921.933/24574
=2.07

Emerson Electric Co's current Enterprise Value is $50,922 Mil.
Emerson Electric Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 6344 (Jun. 2013 ) + 6812 (Sep. 2013 ) + 5606 (Dec. 2013 ) + 5812 (Mar. 2014 ) = $24,574 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.

Emerson Electric Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev 28,69432,52537,58145,11034,39233,30143,27133,82438,02648,730

Emerson Electric Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev 37,91842,11737,67638,02641,33843,33741,92448,73052,63150,781
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