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Esterline Technologies Corp (NYSE:ESL)
Enterprise Value
$2,692 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 $2,692 Mil. Esterline Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $138 Mil. Therefore, Esterline Technologies Corp's EV/EBIT ratio for today is 19.45.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Esterline Technologies Corp's enterprise value is $2,692 Mil. Esterline Technologies Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $240 Mil. Therefore, Esterline Technologies Corp's EV/EBITDA ratio for today is 11.22.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Esterline Technologies Corp's enterprise value is $2,692 Mil. Esterline Technologies Corp's revenue for the trailing twelve months (TTM) ended in Dec. 2015 was $1,884 Mil. Therefore, Esterline Technologies Corp's EV/Revenue ratio for today is 1.43.


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 Oct. 2013 is calculated as

Enterprise Value (A: Oct. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=2520.2304+0+667.859
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+21.279+11.147-179.178
=3,041

Esterline Technologies Corp's Enterprise Value for the quarter that ended in Dec. 2015 is calculated as

Enterprise Value (Q: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=2395.17+0+831.358
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+16.947+10.315-200.891
=3,053

* 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 Corp's EV/EBIT for today is

Esterline Technologies Corp's current Enterprise Value is $2,692 Mil.
Esterline Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was 39.112 (Jan. 2015 ) + 34.782 (Apr. 2015 ) + 47.324 (Jul. 2015 ) + 17.209 (Dec. 2015 ) = $138 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 $2,692 Mil.
Esterline Technologies Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was 64.145 (Jan. 2015 ) + 59.602 (Apr. 2015 ) + 74.781 (Jul. 2015 ) + 41.38 (Dec. 2015 ) = $240 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)
=2692.068/1884.118
=1.43

Esterline Technologies Corp's current Enterprise Value is $2,692 Mil.
Esterline Technologies Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was 446.344 (Jan. 2015 ) + 500.08 (Apr. 2015 ) + 496.217 (Jul. 2015 ) + 441.477 (Dec. 2015 ) = $1,884 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 Corp Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev 9041,0241,2181,9401,3121,6112,0242,5742,4823,041

Esterline Technologies Corp Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Dec15
ev 3,1203,0413,7703,9403,9124,1244,1644,1443,3543,053
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