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National Financial Partners Corporation (NYSE:NFP)
Enterprise Value
$1,145 Mil (As of Mar. 2013)

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, National Financial Partners Corporation's enterprise value is $1,146 Mil. National Financial Partners Corporation's operating income for the trailing twelve months (TTM) ended in Mar. 2013 was $46 Mil. Therefore, National Financial Partners Corporation's EV/EBIT ratio for today is 25.01.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, National Financial Partners Corporation's enterprise value is $1,146 Mil. National Financial Partners Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2013 was $92 Mil. Therefore, National Financial Partners Corporation's EV/EBITDA ratio for today is 12.51.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, National Financial Partners Corporation's enterprise value is $1,146 Mil. National Financial Partners Corporation's revenue for the trailing twelve months (TTM) ended in Mar. 2013 was $1,071 Mil. Therefore, National Financial Partners Corporation's EV/Revenue ratio for today is 1.07.


Definition

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

National Financial Partners Corporation's Enterprise Value for the fiscal year that ended in Dec. 2012 is calculated as

Enterprise Value (A: Dec. 2012 )
=Market Cap+Preferred Stock+Long-Term Debt
=722.15962+0+207.907
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+12.5+0-88.5
=854

National Financial Partners Corporation's Enterprise Value for the quarter that ended in Mar. 2013 is calculated as

Enterprise Value (Q: Mar. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=1015.6304+0+221.688
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-92.09
=1,145

* 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.

National Financial Partners Corporation's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=1146.343/45.841
=25.01

National Financial Partners Corporation's current Enterprise Value is $1,146 Mil.
National Financial Partners Corporation's Operating Income for the trailing twelve months (TTM) ended in Mar. 2013 was 9.513 (Jun. 2012 ) + 1.924 (Sep. 2012 ) + 23.287 (Dec. 2012 ) + 11.117 (Mar. 2013 ) = $46 Mil.

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

National Financial Partners Corporation's EV/EBITDA for today is:

National Financial Partners Corporation's current Enterprise Value is $1,146 Mil.
National Financial Partners Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2013 was 20.84 (Jun. 2012 ) + 13.377 (Sep. 2012 ) + 34.944 (Dec. 2012 ) + 22.5 (Mar. 2013 ) = $92 Mil.

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

National Financial Partners Corporation's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1146.343/1071.078
=1.07

National Financial Partners Corporation's current Enterprise Value is $1,146 Mil.
National Financial Partners Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2013 was 255.436 (Jun. 2012 ) + 252.036 (Sep. 2012 ) + 300.135 (Dec. 2012 ) + 263.471 (Mar. 2013 ) = $1,071 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.

National Financial Partners Corporation Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
ev 7611,2851,8811,7011,997379445669656854

National Financial Partners Corporation Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
ev 6817605865606357716738328671,145
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