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Pentair Ltd (NYSE:PNR)
Enterprise Value
$17,894 Mil (As of Dec. 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, Pentair Ltd's enterprise value is $17,630 Mil. Pentair Ltd's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $774 Mil. Therefore, Pentair Ltd's EV/EBIT ratio for today is 22.79.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Pentair Ltd's enterprise value is $17,630 Mil. Pentair Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,106 Mil. Therefore, Pentair Ltd's EV/EBITDA ratio for today is 15.94.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Pentair Ltd's enterprise value is $17,630 Mil. Pentair Ltd's revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $7,479 Mil. Therefore, Pentair Ltd's EV/Revenue ratio for today is 2.36.


Definition

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

Pentair Ltd'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
=15481.9611+0+2552.6
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2.5+122.4-265.1
=17,894

Pentair Ltd's Enterprise Value for the quarter that ended in Dec. 2013 is calculated as

Enterprise Value (Q: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=15481.9611+0+2552.6
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2.5+122.4-265.1
=17,894

* 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.

Pentair Ltd's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=17630.494/773.7
=22.79

Pentair Ltd's current Enterprise Value is $17,630 Mil.
Pentair Ltd's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 74 (Mar. 2013 ) + 225.9 (Jun. 2013 ) + 240 (Sep. 2013 ) + 233.8 (Dec. 2013 ) = $774 Mil.

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

Pentair Ltd's EV/EBITDA for today is:

Pentair Ltd's current Enterprise Value is $17,630 Mil.
Pentair Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 171 (Mar. 2013 ) + 300.3 (Jun. 2013 ) + 309.4 (Sep. 2013 ) + 325.2 (Dec. 2013 ) = $1,106 Mil.

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

Pentair Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=17630.494/7479.2
=2.36

Pentair Ltd's current Enterprise Value is $17,630 Mil.
Pentair Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 1774 (Mar. 2013 ) + 1963.7 (Jun. 2013 ) + 1824.8 (Sep. 2013 ) + 1916.7 (Dec. 2013 ) = $7,479 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.

Pentair Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev 5,0924,1973,8224,4523,3624,0734,3664,65612,44417,894

Pentair Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev 4,5664,6566,1925,08810,83212,44413,28614,09315,40017,894
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