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McDonald's Corp (NYSE:MCD)
Enterprise Value
$105,429 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, McDonald's Corp's enterprise value is $105,429 Mil. McDonald's Corp's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $8,751 Mil. Therefore, McDonald's Corp's EV/EBIT ratio for today is 12.05.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, McDonald's Corp's enterprise value is $105,429 Mil. McDonald's Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $10,305 Mil. Therefore, McDonald's Corp's EV/EBITDA ratio for today is 10.23.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, McDonald's Corp's enterprise value is $105,429 Mil. McDonald's Corp's revenue for the trailing twelve months (TTM) ended in Mar. 2014 was $28,201 Mil. Therefore, McDonald's Corp's EV/Revenue ratio for today is 3.74.


Definition

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

McDonald's 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
=96547.7609+0+14129.8
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-2798.7
=107,879

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

Enterprise Value (Q: Mar. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=97037.9364+0+13825.4
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+101.4+0-2743.8
=108,221

* 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.

McDonald's Corp's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=105428.570/8750.8
=12.05

McDonald's Corp's current Enterprise Value is $105,429 Mil.
McDonald's Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 2197.7 (Jun. 2013 ) + 2416.7 (Sep. 2013 ) + 2200.4 (Dec. 2013 ) + 1936 (Mar. 2014 ) = $8,751 Mil.

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

McDonald's Corp's EV/EBITDA for today is:

McDonald's Corp's current Enterprise Value is $105,429 Mil.
McDonald's Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 2580.6 (Jun. 2013 ) + 2797.6 (Sep. 2013 ) + 2597.3 (Dec. 2013 ) + 2329.2 (Mar. 2014 ) = $10,305 Mil.

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

McDonald's Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=105428.570/28200.7
=3.74

McDonald's Corp's current Enterprise Value is $105,429 Mil.
McDonald's Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 7083.8 (Jun. 2013 ) + 7323.4 (Sep. 2013 ) + 7093.2 (Dec. 2013 ) + 6700.3 (Mar. 2014 ) = $28,201 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.

McDonald's Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev 48,14648,31561,10575,16377,46876,01289,993112,64299,745107,879

McDonald's Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev 112,642110,184100,365103,20199,745110,873110,057106,675107,879108,221
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