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Schlumberger Ltd (NYSE:SLB)
Enterprise Value
$101,196 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, Schlumberger Ltd's enterprise value is $101,196 Mil. Schlumberger Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $6,311 Mil. Therefore, Schlumberger Ltd's EV/EBIT ratio for today is 16.03.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Schlumberger Ltd's enterprise value is $101,196 Mil. Schlumberger Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $10,497 Mil. Therefore, Schlumberger Ltd's EV/EBITDA ratio for today is 9.64.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Schlumberger Ltd's enterprise value is $101,196 Mil. Schlumberger Ltd's revenue for the trailing twelve months (TTM) ended in Jun. 2015 was $44,791 Mil. Therefore, Schlumberger Ltd's EV/Revenue ratio for today is 2.26.


Definition

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

Schlumberger Ltd'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
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-0
=0

Schlumberger Ltd'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
=109069.1355+0+9110
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+4231+220-7274
=115,356

* 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.

Schlumberger Ltd's EV/EBIT for today is

Schlumberger Ltd's current Enterprise Value is $101,196 Mil.
Schlumberger Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 2610 (Sep. 2014 ) + 803 (Dec. 2014 ) + 1376 (Mar. 2015 ) + 1522 (Jun. 2015 ) = $6,311 Mil.

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

Schlumberger Ltd's EV/EBITDA for today is:

Schlumberger Ltd's current Enterprise Value is $101,196 Mil.
Schlumberger Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 3642 (Sep. 2014 ) + 1868 (Dec. 2014 ) + 2418 (Mar. 2015 ) + 2569 (Jun. 2015 ) = $10,497 Mil.

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

Schlumberger Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=101195.703/44791
=2.26

Schlumberger Ltd's current Enterprise Value is $101,196 Mil.
Schlumberger Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 12725 (Sep. 2014 ) + 12712 (Dec. 2014 ) + 10297 (Mar. 2015 ) + 9057 (Jun. 2015 ) = $44,791 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.

Schlumberger Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev 0000000000

Schlumberger Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev 105,223100,989122,491122,776132,551159,627137,354114,952112,079115,356
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