Switch to:
Flextronics International Ltd (NAS:FLEX)
Enterprise Value
$7,829 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, Flextronics International Ltd's enterprise value is $7,829 Mil. Flextronics International Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $647 Mil. Therefore, Flextronics International Ltd's EV/EBIT ratio for today is 12.10.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Flextronics International Ltd's enterprise value is $7,829 Mil. Flextronics International Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $1,165 Mil. Therefore, Flextronics International Ltd's EV/EBITDA ratio for today is 6.72.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Flextronics International Ltd's enterprise value is $7,829 Mil. Flextronics International Ltd's revenue for the trailing twelve months (TTM) ended in Dec. 2015 was $24,598 Mil. Therefore, Flextronics International Ltd's EV/Revenue ratio for today is 0.32.


Definition

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

Flextronics International Ltd's Enterprise Value for the fiscal year that ended in Mar. 2015 is calculated as

Enterprise Value (A: Mar. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=7142.8976+0+2037.571
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+46.162+35.436-1628.408
=7,634

Flextronics International Ltd's Enterprise Value for the quarter that ended in Dec. 2015 is calculated as

Enterprise Value (Q: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=6173.9075+0+2741.474
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+65.536+35.177-1634.194
=7,382

* 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.

Flextronics International Ltd's EV/EBIT for today is

Flextronics International Ltd's current Enterprise Value is $7,829 Mil.
Flextronics International Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was 155.397 (Mar. 2015 ) + 135.285 (Jun. 2015 ) + 163.993 (Sep. 2015 ) + 192.531 (Dec. 2015 ) = $647 Mil.

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

Flextronics International Ltd's EV/EBITDA for today is:

Flextronics International Ltd's current Enterprise Value is $7,829 Mil.
Flextronics International Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was 291.627 (Mar. 2015 ) + 245.404 (Jun. 2015 ) + 284.768 (Sep. 2015 ) + 343.586 (Dec. 2015 ) = $1,165 Mil.

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

Flextronics International Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=7829.426/24597.787
=0.32

Flextronics International Ltd's current Enterprise Value is $7,829 Mil.
Flextronics International Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was 5951.6 (Mar. 2015 ) + 5566.248 (Jun. 2015 ) + 6316.762 (Sep. 2015 ) + 6763.177 (Dec. 2015 ) = $24,598 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.

Flextronics International Ltd Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
ev 7,4659,5223,2516,7076,1275,6074,8006,0127,6340

Flextronics International Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev 5,1526,0127,3416,6226,8287,6346,8046,9077,3820
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK