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Medtronic Inc (NYSE:MDT)
Enterprise Value
$71,670 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 Inc's enterprise value is $71,670 Mil. Medtronic Inc's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $3,512 Mil. Therefore, Medtronic Inc's EV/EBIT ratio for today is 20.41.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Medtronic Inc's enterprise value is $71,670 Mil. Medtronic Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $4,779 Mil. Therefore, Medtronic Inc's EV/EBITDA ratio for today is 15.00.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Medtronic Inc's enterprise value is $71,670 Mil. Medtronic Inc's revenue for the trailing twelve months (TTM) ended in Oct. 2014 was $17,367 Mil. Therefore, Medtronic Inc's EV/Revenue ratio for today is 4.13.


Definition

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

Medtronic Inc's Enterprise Value for the fiscal year that ended in Apr. 2014 is calculated as

Enterprise Value (A: Apr. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=58761.18+0+10315
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1613+0-14241
=56,448

Medtronic Inc's Enterprise Value for the quarter that ended in Oct. 2014 is calculated as

Enterprise Value (Q: Oct. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=66049.0336+0+9708
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+3970+0-14464
=65,263

* 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.

Medtronic Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=71669.541/3512
=20.41

Medtronic Inc's current Enterprise Value is $71,670 Mil.
Medtronic Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 1025 (Jan. 2014 ) + 369 (Apr. 2014 ) + 1088 (Jul. 2014 ) + 1030 (Oct. 2014 ) = $3,512 Mil.

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

Medtronic Inc's EV/EBITDA for today is:

Medtronic Inc's current Enterprise Value is $71,670 Mil.
Medtronic Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 1261 (Jan. 2014 ) + 799 (Apr. 2014 ) + 1395 (Jul. 2014 ) + 1324 (Oct. 2014 ) = $4,779 Mil.

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

Medtronic Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=71669.541/17367
=4.13

Medtronic Inc's current Enterprise Value is $71,670 Mil.
Medtronic Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 4163 (Jan. 2014 ) + 4565 (Apr. 2014 ) + 4273 (Jul. 2014 ) + 4366 (Oct. 2014 ) = $17,367 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.

Medtronic Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev 62,80362,31763,37060,01240,91653,68752,08647,66247,00756,448

Medtronic Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev 48,69350,82956,19847,00755,43057,00555,15856,44860,31665,263
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