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Exar Corp (NYSE:EXAR)
Enterprise Value
$423.5 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, Exar Corp's enterprise value is $423.5 Mil. Exar Corp's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $-37.8 Mil. Therefore, Exar Corp's EV/EBIT ratio for today is -11.20.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Exar Corp's enterprise value is $423.5 Mil. Exar Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $-21.5 Mil. Therefore, Exar Corp's EV/EBITDA ratio for today is -19.72.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Exar Corp's enterprise value is $423.5 Mil. Exar Corp's revenue for the trailing twelve months (TTM) ended in Sep. 2014 was $132.6 Mil. Therefore, Exar Corp's EV/Revenue ratio for today is 3.20.


Definition

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

Exar Corp's Enterprise Value for the fiscal year that ended in Mar. 2014 is calculated as

Enterprise Value (A: Mar. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=565.713+0+0.07
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-167.034
=398.7

Exar Corp's Enterprise Value for the quarter that ended in Sep. 2014 is calculated as

Enterprise Value (Q: Sep. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=434.1078+0+0.019
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+26+0-78.377
=381.7

* 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.

Exar Corp's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=423.542/-37.814
=-11.20

Exar Corp's current Enterprise Value is $423.5 Mil.
Exar Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was -3.321 (Dec. 2013 ) + -0.311 (Mar. 2014 ) + -11.352 (Jun. 2014 ) + -22.83 (Sep. 2014 ) = $-37.8 Mil.

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

Exar Corp's EV/EBITDA for today is:

Exar Corp's current Enterprise Value is $423.5 Mil.
Exar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 0.215 (Dec. 2013 ) + 3.45 (Mar. 2014 ) + -7.753 (Jun. 2014 ) + -17.392 (Sep. 2014 ) = $-21.5 Mil.

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

Exar Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=423.542/132.555
=3.20

Exar Corp's current Enterprise Value is $423.5 Mil.
Exar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 30.69 (Dec. 2013 ) + 27.987 (Mar. 2014 ) + 30.719 (Jun. 2014 ) + 43.159 (Sep. 2014 ) = $132.6 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.

Exar Corp Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev 120.5178.0119.6114.227.2110.479.1184.5285.4398.7

Exar Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev 178.3172.0210.1285.4300.8452.7384.4398.7483.0381.7
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