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Legg Mason Inc (NYSE:LM)
Enterprise Value
$4,605 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, Legg Mason Inc's enterprise value is $4,605 Mil. Legg Mason Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $427 Mil. Therefore, Legg Mason Inc's EV/EBIT ratio for today is 10.79.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Legg Mason Inc's enterprise value is $4,605 Mil. Legg Mason Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $482 Mil. Therefore, Legg Mason Inc's EV/EBITDA ratio for today is 9.55.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Legg Mason Inc's enterprise value is $4,605 Mil. Legg Mason Inc's revenue for the trailing twelve months (TTM) ended in Jun. 2015 was $2,834 Mil. Therefore, Legg Mason Inc's EV/Revenue ratio for today is 1.62.


Definition

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

Legg Mason Inc's Enterprise Value for the fiscal year that ended in Mar. 2015 is calculated as

Enterprise Value (A: Mar. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=6153.144+0+1058.089
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+6.436+0-1175.095
=6,043

Legg Mason Inc's Enterprise Value for the quarter that ended in Jun. 2015 is calculated as

Enterprise Value (Q: Jun. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=5674.9989+0+1057.122
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-1005.229
=5,727

* 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.

Legg Mason Inc's EV/EBIT for today is

Legg Mason Inc's current Enterprise Value is $4,605 Mil.
Legg Mason Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 23.8 (Sep. 2014 ) + 130.248 (Dec. 2014 ) + 140.893 (Mar. 2015 ) + 131.978 (Jun. 2015 ) = $427 Mil.

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

Legg Mason Inc's EV/EBITDA for today is:

Legg Mason Inc's current Enterprise Value is $4,605 Mil.
Legg Mason Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 37.816 (Sep. 2014 ) + 143.37 (Dec. 2014 ) + 154.872 (Mar. 2015 ) + 145.953 (Jun. 2015 ) = $482 Mil.

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

Legg Mason Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=4604.805/2833.875
=1.62

Legg Mason Inc's current Enterprise Value is $4,605 Mil.
Legg Mason Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 703.895 (Sep. 2014 ) + 718.984 (Dec. 2014 ) + 702.346 (Mar. 2015 ) + 708.65 (Jun. 2015 ) = $2,834 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.

Legg Mason Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ev 16,37712,4817,9573,8404,1685,2923,7134,0075,4426,043

Legg Mason Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev 4,0073,9634,0715,0825,4425,8595,7885,9426,0435,727
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