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Navigators Group (NAS:NAVG)
Enterprise Value
$1,064 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, Navigators Group's enterprise value is $1,064 Mil. Navigators Group's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $138 Mil. Therefore, Navigators Group's EV/EBIT ratio for today is 7.73.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Navigators Group's enterprise value is $1,064 Mil. Navigators Group's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $158 Mil. Therefore, Navigators Group's EV/EBITDA ratio for today is 6.74.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Navigators Group's enterprise value is $1,064 Mil. Navigators Group's revenue for the trailing twelve months (TTM) ended in Mar. 2015 was $1,031 Mil. Therefore, Navigators Group's EV/Revenue ratio for today is 1.03.


Definition

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

Navigators Group's Enterprise Value for the fiscal year that ended in Dec. 2014 is calculated as

Enterprise Value (A: Dec. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=1047.2952+0+263.44
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-270.257
=1,040

Navigators Group's Enterprise Value for the quarter that ended in Mar. 2015 is calculated as

Enterprise Value (Q: Mar. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=1120.1176+0+263.474
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-332.569
=1,051

* 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.

Navigators Group's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=1063.574/137.57
=7.73

Navigators Group's current Enterprise Value is $1,064 Mil.
Navigators Group's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 24.859 (Jun. 2014 ) + 46.257 (Sep. 2014 ) + 28.098 (Dec. 2014 ) + 38.356 (Mar. 2015 ) = $138 Mil.

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

Navigators Group's EV/EBITDA for today is:

Navigators Group's current Enterprise Value is $1,064 Mil.
Navigators Group's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 30.476 (Jun. 2014 ) + 50.707 (Sep. 2014 ) + 33.323 (Dec. 2014 ) + 43.262 (Mar. 2015 ) = $158 Mil.

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

Navigators Group's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1063.574/1030.64
=1.03

Navigators Group's current Enterprise Value is $1,064 Mil.
Navigators Group's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 249.54 (Jun. 2014 ) + 269.26 (Sep. 2014 ) + 251.617 (Dec. 2014 ) + 260.223 (Mar. 2015 ) = $1,031 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.

Navigators Group Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev 5467491,0438237317225306337771,040

Navigators Group Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev 6337576946487778769218111,0401,051
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