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McCormick & Company Inc (NYSE:MKC)
Enterprise Value
$12,481 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, McCormick & Company Inc's enterprise value is $12,481 Mil. McCormick & Company Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Aug. 2015 was $537 Mil. Therefore, McCormick & Company Inc's EV/EBIT ratio for today is 23.26.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, McCormick & Company Inc's enterprise value is $12,481 Mil. McCormick & Company Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Aug. 2015 was $640 Mil. Therefore, McCormick & Company Inc's EV/EBITDA ratio for today is 19.51.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, McCormick & Company Inc's enterprise value is $12,481 Mil. McCormick & Company Inc's revenue for the trailing twelve months (TTM) ended in Aug. 2015 was $4,268 Mil. Therefore, McCormick & Company Inc's EV/Revenue ratio for today is 2.92.


Definition

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

McCormick & Company Inc's Enterprise Value for the fiscal year that ended in Nov. 2015 is calculated as

Enterprise Value (A: Nov. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=10937.616+0+1052.7
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+343+16.7-112.6
=12,237

McCormick & Company Inc's Enterprise Value for the quarter that ended in Aug. 2015 is calculated as

Enterprise Value (Q: Aug. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=10151.804+0+807.2
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+684.8+16.9-108.4
=11,552

* 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.

McCormick & Company Inc's EV/EBIT for today is

McCormick & Company Inc's current Enterprise Value is $12,481 Mil.
McCormick & Company Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Aug. 2015 was 199.7 (Nov. 2014 ) + 93.5 (Feb. 2015 ) + 104.4 (May. 2015 ) + 138.9 (Aug. 2015 ) = $537 Mil.

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

McCormick & Company Inc's EV/EBITDA for today is:

McCormick & Company Inc's current Enterprise Value is $12,481 Mil.
McCormick & Company Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Aug. 2015 was 224.3 (Nov. 2014 ) + 118.4 (Feb. 2015 ) + 132 (May. 2015 ) + 165.1 (Aug. 2015 ) = $640 Mil.

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

McCormick & Company Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=12481.495/4268
=2.92

McCormick & Company Inc's current Enterprise Value is $12,481 Mil.
McCormick & Company Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Aug. 2015 was 1173.6 (Nov. 2014 ) + 1010.4 (Feb. 2015 ) + 1024.1 (May. 2015 ) + 1059.9 (Aug. 2015 ) = $4,268 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.

McCormick & Company Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
ev 5,6525,5605,0745,6636,6967,6879,66410,23110,76912,237

McCormick & Company Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
ev 10,17910,2319,89010,64810,29110,76910,89411,39811,55212,302
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