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LinkedIn Corp (NYSE:LNKD)
Enterprise Value
$23,526 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, LinkedIn Corp's enterprise value is $23,526 Mil. LinkedIn Corp's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $29 Mil. Therefore, LinkedIn Corp's EV/EBIT ratio for today is 799.31.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, LinkedIn Corp's enterprise value is $23,526 Mil. LinkedIn Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $212 Mil. Therefore, LinkedIn Corp's EV/EBITDA ratio for today is 110.97.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, LinkedIn Corp's enterprise value is $23,526 Mil. LinkedIn Corp's revenue for the trailing twelve months (TTM) ended in Jun. 2014 was $1,847 Mil. Therefore, LinkedIn Corp's EV/Revenue ratio for today is 12.74.


Definition

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

LinkedIn Corp'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
=25889.502+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-2329.301
=23,560

LinkedIn Corp's Enterprise Value for the quarter that ended in Jun. 2014 is calculated as

Enterprise Value (Q: Jun. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=20304.6976+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-2366.939
=17,938

* 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.

LinkedIn Corp's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=23526.163/29.433
=799.31

LinkedIn Corp's current Enterprise Value is $23,526 Mil.
LinkedIn Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 4.636 (Sep. 2013 ) + 11.439 (Dec. 2013 ) + -0.764 (Mar. 2014 ) + 14.122 (Jun. 2014 ) = $29 Mil.

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

LinkedIn Corp's EV/EBITDA for today is:

LinkedIn Corp's current Enterprise Value is $23,526 Mil.
LinkedIn Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 38.403 (Sep. 2013 ) + 54.189 (Dec. 2013 ) + 48.976 (Mar. 2014 ) + 70.428 (Jun. 2014 ) = $212 Mil.

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

LinkedIn Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=23526.163/1847.249
=12.74

LinkedIn Corp's current Enterprise Value is $23,526 Mil.
LinkedIn Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 392.96 (Sep. 2013 ) + 447.219 (Dec. 2013 ) + 473.193 (Mar. 2014 ) + 533.877 (Jun. 2014 ) = $1,847 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.

LinkedIn Corp Annual Data

Dec09Dec10Dec11Dec12Dec13
ev 00000005,81711,84423,560

LinkedIn Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev 9,88210,57112,22211,84418,56419,07827,07523,56020,19417,938
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