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, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. This ratio does not apply to banks.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. This ratio does not apply to banks.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, E*TRADE Financial's Enterprise Value is $12,556 Mil.
E*TRADE Financial's Revenue for the trailing twelve months (TTM) ended in Jun. 2020 was $2,869 Mil. Therefore, E*TRADE Financial's EV-to-Revenue ratio for today is 4.38.
E*TRADE Financial Enterprise Value Historical Data
The historical data trend for E*TRADE Financial's Enterprise Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of E*TRADE Financial's Enterprise Value
For the Capital Markets subindustry, E*TRADE Financial's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
E*TRADE Financial's Enterprise Value Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, E*TRADE Financial's Enterprise Value distribution charts can be found below:
* The bar in red indicates where E*TRADE Financial's Enterprise Value falls into.
E*TRADE Financial Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
E*TRADE Financial's Enterprise Value for the fiscal year that ended in Dec. 2019 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
E*TRADE Financial (NAS:ETFC) Enterprise Value 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.
E*TRADE Financial's current Enterprise Value is $12,556 Mil.
E*TRADE Financial's Revenue for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,869 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
E*TRADE Financial Enterprise Value Related Terms
Thank you for viewing the detailed overview of E*TRADE Financial's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
E*TRADE Financial (E*TRADE Financial) Business Description
E-Trade is one of the largest direct-to-investor platforms in the United States and housed over $500 billion of invested assets and client cash at the end of 2019. The company generates interest income on noninvested cash on its platform, trading commissions, service charges including payment for order flow, and fees from stock plan administration. Almost all the company's revenue is generated within the U.S.
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