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Finisar Corp (NAS:FNSR)
Enterprise Value
$1,875 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, Finisar Corp's enterprise value is $1,875 Mil. Finisar Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was $47 Mil. Therefore, Finisar Corp's EV/EBIT ratio for today is 40.26.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Finisar Corp's enterprise value is $1,875 Mil. Finisar Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2016 was $141 Mil. Therefore, Finisar Corp's EV/EBITDA ratio for today is 13.28.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Finisar Corp's enterprise value is $1,875 Mil. Finisar Corp's revenue for the trailing twelve months (TTM) ended in Apr. 2016 was $1,263 Mil. Therefore, Finisar Corp's EV/Revenue ratio for today is 1.48.


Definition

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

Finisar Corp's Enterprise Value for the fiscal year that ended in Apr. 2016 is calculated as

Enterprise Value (A: Apr. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1769.9438+0+231.011
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0+0-562.476
=1,438

Finisar Corp's Enterprise Value for the quarter that ended in Apr. 2016 is calculated as

Enterprise Value (Q: Apr. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1769.9438+0+231.011
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0+0-562.476
=1,438

* 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.

Finisar Corp's EV/EBIT for today is

Finisar Corp's current Enterprise Value is $1,875 Mil.
Finisar Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was 8.307 (Jul. 2015 ) + 10.283 (Oct. 2015 ) + 13.135 (Jan. 2016 ) + 14.856 (Apr. 2016 ) = $47 Mil.

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

Finisar Corp's EV/EBITDA for today is:

Finisar Corp's current Enterprise Value is $1,875 Mil.
Finisar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2016 was 32.03 (Jul. 2015 ) + 33.375 (Oct. 2015 ) + 36.652 (Jan. 2016 ) + 39.204 (Apr. 2016 ) = $141 Mil.

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

Finisar Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1875.474/1263.166
=1.48

Finisar Corp's current Enterprise Value is $1,875 Mil.
Finisar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2016 was 314.03 (Jul. 2015 ) + 321.136 (Oct. 2015 ) + 309.206 (Jan. 2016 ) + 318.794 (Apr. 2016 ) = $1,263 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 & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Finisar Corp Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ev 1,2895594361,0752,2511,3289612,2831,8441,438

Finisar Corp Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ev 1,9982,2831,7211,4481,6151,8481,5419171,0631,438
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