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Forest City Enterprises Inc (NYSE:FCE.A)
Enterprise Value
$9,139 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, Forest City Enterprises Inc's enterprise value is $9,139 Mil. Forest City Enterprises Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $-183 Mil. Therefore, Forest City Enterprises Inc's EV/EBIT ratio for today is .

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Forest City Enterprises Inc's enterprise value is $9,139 Mil. Forest City Enterprises Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $656 Mil. Therefore, Forest City Enterprises Inc's EV/EBITDA ratio for today is 13.92.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Forest City Enterprises Inc's enterprise value is $9,139 Mil. Forest City Enterprises Inc's revenue for the trailing twelve months (TTM) ended in Mar. 2014 was $1,115 Mil. Therefore, Forest City Enterprises Inc's EV/Revenue ratio for today is 8.20.


Definition

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

Forest City Enterprises Inc's Enterprise Value for the fiscal year that ended in Jan. 2013 is calculated as

Enterprise Value (A: Jan. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=3110.7636+10.552+6771.929
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1.7+261.679-333.22
=9,823

Forest City Enterprises Inc's Enterprise Value for the quarter that ended in Mar. 2014 is calculated as

Enterprise Value (Q: Mar. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=3777.216+0+4948.991
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+228+284.526-244.168
=8,995

* 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.

Forest City Enterprises Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=9139.451/-183.453
=

Forest City Enterprises Inc's current Enterprise Value is $9,139 Mil.
Forest City Enterprises Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 28.316 (Apr. 2013 ) + -7.561 (Jul. 2013 ) + -229.283 (Oct. 2013 ) + 25.075 (Mar. 2014 ) = $-183 Mil.

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

Forest City Enterprises Inc's EV/EBITDA for today is:

Forest City Enterprises Inc's current Enterprise Value is $9,139 Mil.
Forest City Enterprises Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 101.472 (Apr. 2013 ) + 124.254 (Jul. 2013 ) + 343.502 (Oct. 2013 ) + 87.181 (Mar. 2014 ) = $656 Mil.

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

Forest City Enterprises Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9139.451/1114.791
=8.20

Forest City Enterprises Inc's current Enterprise Value is $9,139 Mil.
Forest City Enterprises Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 305.615 (Apr. 2013 ) + 291.762 (Jul. 2013 ) + 266.227 (Oct. 2013 ) + 251.187 (Mar. 2014 ) = $1,115 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.

Forest City Enterprises Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
ev 6,8828,5159,93812,74511,2709,23710,64111,2739,2069,823

Forest City Enterprises Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Mar13Apr13Jul13Oct13Mar14
ev 9,2069,6729,5799,9089,8233,30010,32310,3019,5618,995
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