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Eaton Corp PLC (NYSE:ETN)
Enterprise Value
$33,235 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, Eaton Corp PLC's enterprise value is $33,235 Mil. Eaton Corp PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was $1,755 Mil. Therefore, Eaton Corp PLC's EV/EBIT ratio for today is 18.94.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Eaton Corp PLC's enterprise value is $33,235 Mil. Eaton Corp PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $2,687 Mil. Therefore, Eaton Corp PLC's EV/EBITDA ratio for today is 12.37.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Eaton Corp PLC's enterprise value is $33,235 Mil. Eaton Corp PLC's revenue for the trailing twelve months (TTM) ended in Sep. 2015 was $21,363 Mil. Therefore, Eaton Corp PLC's EV/Revenue ratio for today is 1.56.


Definition

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

Eaton Corp PLC's Enterprise Value for the fiscal year that ended in Dec. 2014 is calculated as

Enterprise Value (A: Dec. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=31798.484+0+8024
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1010+53-1026
=39,859

Eaton Corp PLC's Enterprise Value for the quarter that ended in Sep. 2015 is calculated as

Enterprise Value (Q: Sep. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=23741.64+0+7830
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+842+47-568
=31,893

* 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.

Eaton Corp PLC's EV/EBIT for today is

Eaton Corp PLC's current Enterprise Value is $33,235 Mil.
Eaton Corp PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was 17 (Dec. 2014 ) + 557 (Mar. 2015 ) + 638 (Jun. 2015 ) + 543 (Sep. 2015 ) = $1,755 Mil.

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

Eaton Corp PLC's EV/EBITDA for today is:

Eaton Corp PLC's current Enterprise Value is $33,235 Mil.
Eaton Corp PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 257 (Dec. 2014 ) + 783 (Mar. 2015 ) + 872 (Jun. 2015 ) + 775 (Sep. 2015 ) = $2,687 Mil.

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

Eaton Corp PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=33234.760/21363
=1.56

Eaton Corp PLC's current Enterprise Value is $33,235 Mil.
Eaton Corp PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 5565 (Dec. 2014 ) + 5223 (Mar. 2015 ) + 5372 (Jun. 2015 ) + 5203 (Sep. 2015 ) = $21,363 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.

Eaton Corp PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev 12,87616,97612,00313,30919,58117,26835,30044,07739,8590

Eaton Corp PLC Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev 41,06444,07744,05544,55838,14339,85940,32739,92331,8930
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