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Morgan Stanley (NYSE:MS)
Enterprise Value
$168,612 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, Morgan Stanley's enterprise value is $168,612 Mil. Morgan Stanley's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $5,365 Mil. Therefore, Morgan Stanley's EV/EBIT ratio for today is 31.43.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Morgan Stanley's enterprise value is $168,612 Mil. Morgan Stanley's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $6,772 Mil. Therefore, Morgan Stanley's EV/EBITDA ratio for today is 24.90.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Morgan Stanley's enterprise value is $168,612 Mil. Morgan Stanley's revenue for the trailing twelve months (TTM) ended in Jun. 2014 was $33,293 Mil. Therefore, Morgan Stanley's EV/Revenue ratio for today is 5.06.


Definition

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

Morgan Stanley'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
=61194.0224+3220+178143
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2142+3109-99086
=148,722

Morgan Stanley'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
=62194.1995+5020+174932
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1783+1446-85598
=159,777

* 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.

Morgan Stanley's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=168612.015/5365
=31.43

Morgan Stanley's current Enterprise Value is $168,612 Mil.
Morgan Stanley's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 1339 (Sep. 2013 ) + -214 (Dec. 2013 ) + 2307 (Mar. 2014 ) + 1933 (Jun. 2014 ) = $5,365 Mil.

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

Morgan Stanley's EV/EBITDA for today is:

Morgan Stanley's current Enterprise Value is $168,612 Mil.
Morgan Stanley's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 1707 (Sep. 2013 ) + 213 (Dec. 2013 ) + 2633 (Mar. 2014 ) + 2219 (Jun. 2014 ) = $6,772 Mil.

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

Morgan Stanley's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=168612.015/33293
=5.06

Morgan Stanley's current Enterprise Value is $168,612 Mil.
Morgan Stanley's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 7932 (Sep. 2013 ) + 7824 (Dec. 2013 ) + 8929 (Mar. 2014 ) + 8608 (Jun. 2014 ) = $33,293 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.

Morgan Stanley Annual Data

Dec94Dec95Dec96Dec09Dec10Dec11Dec12Dec13
ev 0013,37818,17929,574209,668209,016193,851154,632148,722

Morgan Stanley Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev 181,861137,546159,516154,632164,882152,363143,990148,722151,649159,777
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