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Shire PLC (NAS:SHPG)
Enterprise Value
$45,996 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, Shire PLC's enterprise value is $45,996 Mil. Shire PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $3,307 Mil. Therefore, Shire PLC's EV/EBIT ratio for today is 13.91.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Shire PLC's enterprise value is $45,996 Mil. Shire PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $3,801 Mil. Therefore, Shire PLC's EV/EBITDA ratio for today is 12.10.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Shire PLC's enterprise value is $45,996 Mil. Shire PLC's revenue for the trailing twelve months (TTM) ended in Jun. 2015 was $6,219 Mil. Therefore, Shire PLC's EV/Revenue ratio for today is 7.40.


Definition

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

Shire PLC's Enterprise Value for the fiscal year that ended in Mar. 2014 is calculated as

Enterprise Value (A: Mar. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=0+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-0
=0

Shire PLC's Enterprise Value for the quarter that ended in Jun. 2015 is calculated as

Enterprise Value (Q: Jun. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=48339.0533+0+73.9
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2229.9+0-64
=50,579

* 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.

Shire PLC's EV/EBIT for today is

Shire PLC's current Enterprise Value is $45,996 Mil.
Shire PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 582.4 (Sep. 2014 ) + 2112.6 (Dec. 2014 ) + 480.9 (Mar. 2015 ) + 131.2 (Jun. 2015 ) = $3,307 Mil.

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

Shire PLC's EV/EBITDA for today is:

Shire PLC's current Enterprise Value is $45,996 Mil.
Shire PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 684.7 (Sep. 2014 ) + 2212.8 (Dec. 2014 ) + 601.5 (Mar. 2015 ) + 302.4 (Jun. 2015 ) = $3,801 Mil.

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

Shire PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=45995.556/6219.2
=7.40

Shire PLC's current Enterprise Value is $45,996 Mil.
Shire PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 1597.1 (Sep. 2014 ) + 1576.1 (Dec. 2014 ) + 1488.4 (Mar. 2015 ) + 1557.6 (Jun. 2015 ) = $6,219 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.

Shire PLC Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev 0000000000

Shire PLC Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev 16,78817,35221,90925,90130,98447,16252,07140,31250,44950,579
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