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Sunoco LP (NYSE:SUN)
Enterprise Value
$7,199 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, Sunoco LP's enterprise value is $7,199 Mil. Sunoco LP's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $355 Mil. Therefore, Sunoco LP's EV/EBIT ratio for today is 20.29.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Sunoco LP's enterprise value is $7,199 Mil. Sunoco LP's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $587 Mil. Therefore, Sunoco LP's EV/EBITDA ratio for today is 12.26.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Sunoco LP's enterprise value is $7,199 Mil. Sunoco LP's revenue for the trailing twelve months (TTM) ended in Sep. 2016 was $13,943 Mil. Therefore, Sunoco LP's EV/Revenue ratio for today is 0.52.


Definition

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

Sunoco LP's Enterprise Value for the fiscal year that ended in Dec. 2015 is calculated as

Enterprise Value (A: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=3896.8318+0+1952.531
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+5.084+20.175-72.627
=5,802

Sunoco LP's Enterprise Value for the quarter that ended in Sep. 2016 is calculated as

Enterprise Value (Q: Sep. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=3241.8675+0+4473.43
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+5.01+0-80.565
=7,640

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Sunoco LP's EV/EBIT for today is

Sunoco LP's current Enterprise Value is $7,199 Mil.
Sunoco LP's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 35.334 (Dec. 2015 ) + 91.409 (Mar. 2016 ) + 124.439 (Jun. 2016 ) + 103.636 (Sep. 2016 ) = $355 Mil.

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

Sunoco LP's EV/EBITDA for today is:

Sunoco LP's current Enterprise Value is $7,199 Mil.
Sunoco LP's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 33.426 (Dec. 2015 ) + 169.475 (Mar. 2016 ) + 203.163 (Jun. 2016 ) + 181.264 (Sep. 2016 ) = $587 Mil.

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

Sunoco LP's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=7199.492/13943.436
=0.52

Sunoco LP's current Enterprise Value is $7,199 Mil.
Sunoco LP's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 2551.639 (Dec. 2015 ) + 3202.313 (Mar. 2016 ) + 4052.167 (Jun. 2016 ) + 4137.317 (Sep. 2016 ) = $13,943 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Sunoco LP Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
ev 0000007289052,7195,802

Sunoco LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev 1,2561,4722,7192,6133,3254,9705,8027,8237,4597,640
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