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LKQ Corporation (NAS:LKQ)
Enterprise Value
$11,052 Mil (As of Dec. 2013)

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, LKQ Corporation's enterprise value is $9,407 Mil. LKQ Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $530 Mil. Therefore, LKQ Corporation's EV/EBIT ratio for today is 17.74.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, LKQ Corporation's enterprise value is $9,407 Mil. LKQ Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $612 Mil. Therefore, LKQ Corporation's EV/EBITDA ratio for today is 15.36.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, LKQ Corporation's enterprise value is $9,407 Mil. LKQ Corporation's revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $5,063 Mil. Therefore, LKQ Corporation's EV/Revenue ratio for today is 1.86.


Definition

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

LKQ Corporation's Enterprise Value for the fiscal year that ended in Dec. 2013 is calculated as

Enterprise Value (A: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=9896.649+0+1264.246
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+41.535+0-150.488
=11,052

LKQ Corporation's Enterprise Value for the quarter that ended in Dec. 2013 is calculated as

Enterprise Value (Q: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=9896.649+0+1264.246
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+41.535+0-150.488
=11,052

* 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.

LKQ Corporation's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=9407.163/530.18
=17.74

LKQ Corporation's current Enterprise Value is $9,407 Mil.
LKQ Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 141.588 (Mar. 2013 ) + 131.378 (Jun. 2013 ) + 123.395 (Sep. 2013 ) + 133.819 (Dec. 2013 ) = $530 Mil.

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

LKQ Corporation's EV/EBITDA for today is:

LKQ Corporation's current Enterprise Value is $9,407 Mil.
LKQ Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 159.403 (Mar. 2013 ) + 152.049 (Jun. 2013 ) + 145.552 (Sep. 2013 ) + 155.245 (Dec. 2013 ) = $612 Mil.

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

LKQ Corporation's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9407.163/5062.528
=1.86

LKQ Corporation's current Enterprise Value is $9,407 Mil.
LKQ Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 1195.997 (Mar. 2013 ) + 1251.748 (Jun. 2013 ) + 1298.094 (Sep. 2013 ) + 1316.689 (Dec. 2013 ) = $5,063 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.

LKQ Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev 4569171,3223,3832,1943,2763,8105,3287,34211,052

LKQ Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev 4,1285,3285,4345,8786,3997,3427,4998,93510,78311,052
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