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Esterline Technologies Corp (NYSE:ESL)
Enterprise Value
$3,386 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 Corp's enterprise value is $3,386 Mil. Esterline Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $171 Mil. Therefore, Esterline Technologies Corp's EV/EBIT ratio for today is 19.86.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Esterline Technologies Corp's enterprise value is $3,386 Mil. Esterline Technologies Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $271 Mil. Therefore, Esterline Technologies Corp's EV/EBITDA ratio for today is 12.51.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Esterline Technologies Corp's enterprise value is $3,386 Mil. Esterline Technologies Corp's revenue for the trailing twelve months (TTM) ended in Sep. 2016 was $1,993 Mil. Therefore, Esterline Technologies Corp'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.

Esterline Technologies Corp's Enterprise Value for the fiscal year that ended in Sep. 2016 is calculated as

Enterprise Value (A: Sep. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=2237.8572+0+853.796
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+16.774+10.574-258.52
=2,860

Esterline Technologies Corp's Enterprise Value for the quarter that ended in Sep. 2016 is calculated as

Enterprise Value (Q: Sep. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=2237.8572+0+853.796
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+16.774+10.574-258.52
=2,860

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Corp's EV/EBIT for today is

Esterline Technologies Corp's current Enterprise Value is $3,386 Mil.
Esterline Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 17.209 (Dec. 2015 ) + 27.93 (Mar. 2016 ) + 54.075 (Jun. 2016 ) + 71.312 (Sep. 2016 ) = $171 Mil.

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

Esterline Technologies Corp's EV/EBITDA for today is:

Esterline Technologies Corp's current Enterprise Value is $3,386 Mil.
Esterline Technologies Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 41.38 (Dec. 2015 ) + 52.495 (Mar. 2016 ) + 78.611 (Jun. 2016 ) + 98.298 (Sep. 2016 ) = $271 Mil.

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

Esterline Technologies Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=3386.174/1992.631
=1.70

Esterline Technologies Corp's current Enterprise Value is $3,386 Mil.
Esterline Technologies Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 441.477 (Dec. 2015 ) + 490.31 (Mar. 2016 ) + 517.092 (Jun. 2016 ) + 543.752 (Sep. 2016 ) = $1,993 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Esterline Technologies Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Sep14Sep15Sep16
ev 1,9401,3121,6112,0242,5742,4823,0413,5542,8182,860

Esterline Technologies Corp Quarterly Data

Sep14Oct14Jan15Apr15Jul15Sep15Dec15Mar16Jun16Sep16
ev 3,5544,1244,1834,1443,3542,8253,0562,5702,4692,860
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