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Esterline Technologies (NYSE:ESL)
Enterprise Value
$4,011 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, Esterline Technologies's enterprise value is $4,011 Mil. Esterline Technologies's operating income for the trailing twelve months (TTM) ended in Apr. 2014 was $243 Mil. Therefore, Esterline Technologies's EV/EBIT ratio for today is 16.53.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Esterline Technologies's enterprise value is $4,011 Mil. Esterline Technologies's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2014 was $358 Mil. Therefore, Esterline Technologies's EV/EBITDA ratio for today is 11.19.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Esterline Technologies's enterprise value is $4,011 Mil. Esterline Technologies's revenue for the trailing twelve months (TTM) ended in Apr. 2014 was $2,047 Mil. Therefore, Esterline Technologies's EV/Revenue ratio for today is 1.96.


Definition

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

Esterline Technologies's Enterprise Value for the fiscal year that ended in Oct. 2013 is calculated as

Enterprise Value (A: Oct. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=2515.4208+0+667.859
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+21.279+11.147-179.178
=3,037

Esterline Technologies's Enterprise Value for the quarter that ended in Apr. 2014 is calculated as

Enterprise Value (Q: Apr. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=3467.9262+0+649.254
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+17.98+11.787-207.443
=3,940

* 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.

Esterline Technologies's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=4010.678/242.608
=16.53

Esterline Technologies's current Enterprise Value is $4,011 Mil.
Esterline Technologies's Operating Income for the trailing twelve months (TTM) ended in Apr. 2014 was 49.523 (Jul. 2013 ) + 92.302 (Oct. 2013 ) + 45.787 (Jan. 2014 ) + 54.996 (Apr. 2014 ) = $243 Mil.

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

Esterline Technologies's EV/EBITDA for today is:

Esterline Technologies's current Enterprise Value is $4,011 Mil.
Esterline Technologies's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 81.308 (Jul. 2013 ) + 116.651 (Oct. 2013 ) + 75.546 (Jan. 2014 ) + 84.776 (Apr. 2014 ) = $358 Mil.

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

Esterline Technologies's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=4010.678/2046.784
=1.96

Esterline Technologies's current Enterprise Value is $4,011 Mil.
Esterline Technologies's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 478.068 (Jul. 2013 ) + 534.162 (Oct. 2013 ) + 504.98 (Jan. 2014 ) + 529.574 (Apr. 2014 ) = $2,047 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.

Esterline Technologies Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev 9031,0231,2171,7461,3121,6112,0242,5742,4823,037

Esterline Technologies Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ev 2,6902,8952,5412,4822,6772,9653,1203,0373,7803,940
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