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, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, HMS Holdings's Enterprise Value is $3,289.8 Mil.
HMS Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2020 was $94.9 Mil. Therefore, HMS Holdings's EV-to-EBIT ratio for today is 34.68.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, HMS Holdings's Enterprise Value is $3,289.8 Mil.
HMS Holdings's EBITDA for the trailing twelve months (TTM) ended in Dec. 2020 was $141.6 Mil. Therefore, HMS Holdings's EV-to-EBITDA ratio for today is 23.23.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, HMS Holdings's Enterprise Value is $3,289.8 Mil.
HMS Holdings's Revenue for the trailing twelve months (TTM) ended in Dec. 2020 was $673.3 Mil. Therefore, HMS Holdings's EV-to-Revenue ratio for today is 4.89.
HMS Holdings Enterprise Value Historical Data
The historical data trend for HMS Holdings's Enterprise Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of HMS Holdings's Enterprise Value
For the Health Information Services subindustry, HMS Holdings's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HMS Holdings's Enterprise Value Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HMS Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where HMS Holdings's Enterprise Value falls into.
HMS Holdings Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
HMS Holdings's Enterprise Value for the fiscal year that ended in Dec. 2020 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HMS Holdings (NAS:HMSY) Enterprise Value 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-to-EBIT is calculated as Enterprise Value divided by its EBIT.
HMS Holdings's current Enterprise Value is $3,289.8 Mil.
HMS Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $94.9 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
HMS Holdings's current Enterprise Value is $3,289.8 Mil.
HMS Holdings's EBITDA for the trailing twelve months (TTM) ended in Dec. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $141.6 Mil.
HMS Holdings's current Enterprise Value is $3,289.8 Mil.
HMS Holdings's Revenue for the trailing twelve months (TTM) ended in Dec. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $673.3 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HMS Holdings Enterprise Value Related Terms
Thank you for viewing the detailed overview of HMS Holdings's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
HMS Holdings Corp is a United States-based holding company that conducts businesses through its operating subsidiaries. The company offers services that help customers contain healthcare insurance benefit costs. Its primary offerings comprise coordination of benefits, payment integrity, and eligibility verification. The coordination of benefits service ensures the right party pays a health claim. The payment integrity service ensures the billing and/or payment is accurate and appropriate. The eligibility verification service ensures individuals meet qualifying criteria for healthcare programs. The company's customers include Medicaid agencies, government health agencies, health plans, government and private employers, and others. The company operates only within the United States.
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