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, LinkedIn's Enterprise Value is $26,560 Mil.
LinkedIn's EBIT for the trailing twelve months (TTM) ended in Sep. 2016 was $-64 Mil. Therefore, LinkedIn's EV-to-EBIT ratio for today is -415.95.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, LinkedIn's Enterprise Value is $26,560 Mil.
LinkedIn's EBITDA for the trailing twelve months (TTM) ended in Sep. 2016 was $485 Mil. Therefore, LinkedIn's EV-to-EBITDA ratio for today is 54.72.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, LinkedIn's Enterprise Value is $26,560 Mil.
LinkedIn's Revenue for the trailing twelve months (TTM) ended in Sep. 2016 was $3,615 Mil. Therefore, LinkedIn's EV-to-Revenue ratio for today is 7.35.
LinkedIn Enterprise Value Historical Data
The historical data trend for LinkedIn'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 LinkedIn's Enterprise Value
For the Internet Content & Information subindustry, LinkedIn'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.
LinkedIn's Enterprise Value Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, LinkedIn's Enterprise Value distribution charts can be found below:
* The bar in red indicates where LinkedIn's Enterprise Value falls into.
LinkedIn 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.
LinkedIn's Enterprise Value for the fiscal year that ended in Dec. 2015 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.
LinkedIn (NYSE:LNKD) 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.
LinkedIn's current Enterprise Value is $26,560 Mil.
LinkedIn's EBIT for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-64 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
LinkedIn's current Enterprise Value is $26,560 Mil.
LinkedIn's EBITDA for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $485 Mil.
LinkedIn's current Enterprise Value is $26,560 Mil.
LinkedIn's Revenue for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,615 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.
LinkedIn Enterprise Value Related Terms
Thank you for viewing the detailed overview of LinkedIn's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.
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