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GuruFocus has detected 6 Warning Signs with Medtronic PLC $MDT.
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Medtronic PLC (NYSE:MDT)
Enterprise Value
$131,129 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, Medtronic PLC's enterprise value is $131,129 Mil. Medtronic PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $5,586 Mil. Therefore, Medtronic PLC's EV/EBIT ratio for today is 23.47.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Medtronic PLC's enterprise value is $131,129 Mil. Medtronic PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2017 was $8,493 Mil. Therefore, Medtronic PLC's EV/EBITDA ratio for today is 15.44.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Medtronic PLC's enterprise value is $131,129 Mil. Medtronic PLC's revenue for the trailing twelve months (TTM) ended in Jan. 2017 was $29,361 Mil. Therefore, Medtronic PLC's EV/Revenue ratio for today is 4.47.


Definition

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

Medtronic PLC's Enterprise Value for the fiscal year that ended in Apr. 2016 is calculated as

Enterprise Value (A: Apr. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=110732.433+0+30247
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+993+0-12634
=129,338

Medtronic PLC's Enterprise Value for the quarter that ended in Jan. 2017 is calculated as

Enterprise Value (Q: Jan. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=104062.2576+0+25923
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+6226+106-11458
=124,859

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Medtronic PLC's EV/EBIT for today is

Medtronic PLC's current Enterprise Value is $131,129 Mil.
Medtronic PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 1615 (Apr. 2016 ) + 1260 (Jul. 2016 ) + 1476 (Oct. 2016 ) + 1235 (Jan. 2017 ) = $5,586 Mil.

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

Medtronic PLC's EV/EBITDA for today is:

Medtronic PLC's current Enterprise Value is $131,129 Mil.
Medtronic PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 2323 (Apr. 2016 ) + 1997 (Jul. 2016 ) + 2208 (Oct. 2016 ) + 1965 (Jan. 2017 ) = $8,493 Mil.

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

Medtronic PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=131129.130/29361
=4.47

Medtronic PLC's current Enterprise Value is $131,129 Mil.
Medtronic PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 7567 (Apr. 2016 ) + 7166 (Jul. 2016 ) + 7345 (Oct. 2016 ) + 7283 (Jan. 2017 ) = $29,361 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Medtronic PLC Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ev 63,37060,10540,91653,68752,08640,90447,00756,448122,548129,338

Medtronic PLC Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev 66,30599,428122,548128,435123,156124,915129,338141,443135,524124,859
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