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Nokia Oyj (NYSE:NOK)
Enterprise Value
$23,485 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, Nokia Oyj's enterprise value is $23,485 Mil. Nokia Oyj's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $1,786 Mil. Therefore, Nokia Oyj's EV/EBIT ratio for today is 13.15.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Nokia Oyj's enterprise value is $23,485 Mil. Nokia Oyj's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,791 Mil. Therefore, Nokia Oyj's EV/EBITDA ratio for today is 13.11.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Nokia Oyj's enterprise value is $23,485 Mil. Nokia Oyj's revenue for the trailing twelve months (TTM) ended in Jun. 2014 was $9,254 Mil. Therefore, Nokia Oyj's EV/Revenue ratio for today is 2.54.


Definition

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

Nokia Oyj'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
=30371.8689+0+4476.83923706
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+4599.45504087+261.580381471-12668.9373297
=27,041

Nokia Oyj'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
=28499.3739+0+3293.64005413
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+119.079837618+120.433017591-12364.0054127
=19,669

* 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.

Nokia Oyj's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=23485.096/1785.53407103
=13.15

Nokia Oyj's current Enterprise Value is $23,485 Mil.
Nokia Oyj's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 160.982264666 (Sep. 2013 ) + 905.994550409 (Dec. 2013 ) + 334.254143646 (Mar. 2014 ) + 384.303112314 (Jun. 2014 ) = $1,786 Mil.

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

Nokia Oyj's EV/EBITDA for today is:

Nokia Oyj's current Enterprise Value is $23,485 Mil.
Nokia Oyj's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 165.075034106 (Sep. 2013 ) + 914.16893733 (Dec. 2013 ) + 334.254143646 (Mar. 2014 ) + 377.537212449 (Jun. 2014 ) = $1,791 Mil.

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

Nokia Oyj's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=23485.096/9254.24349169
=2.54

Nokia Oyj's current Enterprise Value is $23,485 Mil.
Nokia Oyj's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 7724.420191 (Sep. 2013 ) + -6130.79019074 (Dec. 2013 ) + 3679.55801105 (Mar. 2014 ) + 3981.05548038 (Jun. 2014 ) = $9,254 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.

Nokia Oyj Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev 58,13869,85572,654139,27659,20745,25731,76413,48610,03227,041

Nokia Oyj Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev 15,8704,1365,98210,0327,6129,79820,93427,04124,68019,669
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