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Fifth Street Finance Corporation (NAS:FSC)
Enterprise Value
$1,943.1 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, Fifth Street Finance Corporation's enterprise value is $1,943.1 Mil. Fifth Street Finance Corporation's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $133.8 Mil. Therefore, Fifth Street Finance Corporation's EV/EBIT ratio for today is 14.52.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Fifth Street Finance Corporation's enterprise value is $1,943.1 Mil. Fifth Street Finance Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $133.8 Mil. Therefore, Fifth Street Finance Corporation's EV/EBITDA ratio for today is 14.52.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Fifth Street Finance Corporation's enterprise value is $1,943.1 Mil. Fifth Street Finance Corporation's revenue for the trailing twelve months (TTM) ended in Jun. 2014 was $227.6 Mil. Therefore, Fifth Street Finance Corporation's EV/Revenue ratio for today is 8.54.


Definition

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

Fifth Street Finance Corporation'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
=1406.5766+0+646
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-147.359
=1,905.2

Fifth Street Finance Corporation's Enterprise Value for the quarter that ended in Jun. 2014 is calculated as

Enterprise Value (Q: Jun. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=1363.572+0+795.683
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-74.661
=2,084.6

* 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.

Fifth Street Finance Corporation's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=1943.122/133.816
=14.52

Fifth Street Finance Corporation's current Enterprise Value is $1,943.1 Mil.
Fifth Street Finance Corporation's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 28.7 (Sep. 2013 ) + 36.218 (Dec. 2013 ) + 34.233 (Mar. 2014 ) + 34.665 (Jun. 2014 ) = $133.8 Mil.

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

Fifth Street Finance Corporation's EV/EBITDA for today is:

Fifth Street Finance Corporation's current Enterprise Value is $1,943.1 Mil.
Fifth Street Finance Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 28.7 (Sep. 2013 ) + 36.218 (Dec. 2013 ) + 34.233 (Mar. 2014 ) + 34.665 (Jun. 2014 ) = $133.8 Mil.

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

Fifth Street Finance Corporation's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1943.122/227.648
=8.54

Fifth Street Finance Corporation's current Enterprise Value is $1,943.1 Mil.
Fifth Street Finance Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 47.694 (Sep. 2013 ) + 61.118 (Dec. 2013 ) + 59.299 (Mar. 2014 ) + 59.537 (Jun. 2014 ) = $227.6 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.

Fifth Street Finance Corporation Annual Data

Sep08Sep09Sep10Sep11Sep12Sep13
ev 0.00.00.00.0204.3300.8530.91,070.01,380.61,905.2

Fifth Street Finance Corporation Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev 813.21,210.81,380.61,656.21,504.01,481.11,905.22,295.72,645.22,084.6
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