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F5 Networks Inc (NAS:FFIV)
Enterprise Value
$7,915 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, F5 Networks Inc's enterprise value is $7,915 Mil. F5 Networks Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $449 Mil. Therefore, F5 Networks Inc's EV/EBIT ratio for today is 17.62.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, F5 Networks Inc's enterprise value is $7,915 Mil. F5 Networks Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $492 Mil. Therefore, F5 Networks Inc's EV/EBITDA ratio for today is 16.09.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, F5 Networks Inc's enterprise value is $7,915 Mil. F5 Networks Inc's revenue for the trailing twelve months (TTM) ended in Mar. 2014 was $1,592 Mil. Therefore, F5 Networks Inc's EV/Revenue ratio for today is 4.97.


Definition

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

F5 Networks Inc's Enterprise Value for the fiscal year that ended in Sep. 2013 is calculated as

Enterprise Value (A: Sep. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=6718.7664+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-542.143
=6,177

F5 Networks 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
=8044.1672+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-623.76
=7,420

* 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.

F5 Networks Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=7915.040/449.255
=17.62

F5 Networks Inc's current Enterprise Value is $7,915 Mil.
F5 Networks Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 104.077 (Jun. 2013 ) + 125.181 (Sep. 2013 ) + 109.133 (Dec. 2013 ) + 110.864 (Mar. 2014 ) = $449 Mil.

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

F5 Networks Inc's EV/EBITDA for today is:

F5 Networks Inc's current Enterprise Value is $7,915 Mil.
F5 Networks Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 113.869 (Jun. 2013 ) + 135.481 (Sep. 2013 ) + 120.57 (Dec. 2013 ) + 122.105 (Mar. 2014 ) = $492 Mil.

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

F5 Networks Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=7915.040/1592.126
=4.97

F5 Networks Inc's current Enterprise Value is $7,915 Mil.
F5 Networks Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 370.302 (Jun. 2013 ) + 395.329 (Sep. 2013 ) + 406.452 (Dec. 2013 ) + 420.043 (Mar. 2014 ) = $1,592 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.

F5 Networks Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev 9121,4361,8042,8741,6922,8177,9145,0807,7056,177

F5 Networks Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev 10,1787,3477,7057,1156,4594,8366,1776,4737,4200
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