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GuruFocus has detected 4 Warning Signs with Li & Fung Ltd $LFUGF.
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Li & Fung Ltd (OTCPK:LFUGF)
Enterprise Value
$3,816 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, Li & Fung Ltd's enterprise value is $3,816 Mil. Li & Fung Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $398 Mil. Therefore, Li & Fung Ltd's EV/EBIT ratio for today is 9.58.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Li & Fung Ltd's enterprise value is $3,816 Mil. Li & Fung Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $490 Mil. Therefore, Li & Fung Ltd's EV/EBITDA ratio for today is 7.79.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Li & Fung Ltd's enterprise value is $3,816 Mil. Li & Fung Ltd's revenue for the trailing twelve months (TTM) ended in Dec. 2016 was $16,761 Mil. Therefore, Li & Fung Ltd's EV/Revenue ratio for today is 0.23.


Definition

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

Li & Fung Ltd's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=3702.798+0+753.458
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+528.999+-1.083-995.736
=3,988

Li & Fung Ltd's Enterprise Value for the quarter that ended in Dec. 2016 is calculated as

Enterprise Value (Q: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=3702.798+0+753.458
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+528.999+-1.083-995.736
=3,988

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Li & Fung Ltd's EV/EBIT for today is

Li & Fung Ltd's current Enterprise Value is $3,816 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Li & Fung Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $398 Mil.

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

Li & Fung Ltd's EV/EBITDA for today is:

Li & Fung Ltd's current Enterprise Value is $3,816 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Li & Fung Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $490 Mil.

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

Li & Fung Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=3816.000/16760.632
=0.23

Li & Fung Ltd's current Enterprise Value is $3,816 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Li & Fung Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $16,761 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Li & Fung Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev 0015,67924,28015,56115,11711,6368,4346,6793,988

Li & Fung Ltd Semi-Annual Data

Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
ev 17,40415,11712,10011,63613,4798,4347,7516,6794,7343,988
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