Switch to:
Torchmark Corp (NYSE:TMK)
Enterprise Value
$8,449 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, Torchmark Corp's enterprise value is $8,449 Mil. Torchmark Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $845 Mil. Therefore, Torchmark Corp's EV/EBIT ratio for today is 10.00.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Torchmark Corp's enterprise value is $8,449 Mil. Torchmark Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $845 Mil. Therefore, Torchmark Corp's EV/EBITDA ratio for today is 10.00.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Torchmark Corp's enterprise value is $8,449 Mil. Torchmark Corp's revenue for the trailing twelve months (TTM) ended in Mar. 2015 was $3,970 Mil. Therefore, Torchmark Corp's EV/Revenue ratio for today is 2.13.


Definition

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

Torchmark Corp's Enterprise Value for the fiscal year that ended in Dec. 2014 is calculated as

Enterprise Value (A: Dec. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=6929.9681+0+992.13
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+238.398+0-81.901
=8,079

Torchmark Corp's Enterprise Value for the quarter that ended in Mar. 2015 is calculated as

Enterprise Value (Q: Mar. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=6947.38+0+992.463
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+258.921+0-94.974
=8,104

* 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.

Torchmark Corp's EV/EBIT for today is

Torchmark Corp's current Enterprise Value is $8,449 Mil.
Torchmark Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 205.795 (Jun. 2014 ) + 208.597 (Sep. 2014 ) + 230.666 (Dec. 2014 ) + 199.492 (Mar. 2015 ) = $845 Mil.

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

Torchmark Corp's EV/EBITDA for today is:

Torchmark Corp's current Enterprise Value is $8,449 Mil.
Torchmark Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 205.795 (Jun. 2014 ) + 208.597 (Sep. 2014 ) + 230.666 (Dec. 2014 ) + 199.492 (Mar. 2015 ) = $845 Mil.

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

Torchmark Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=8449.250/3969.708
=2.13

Torchmark Corp's current Enterprise Value is $8,449 Mil.
Torchmark Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 983.983 (Jun. 2014 ) + 967.001 (Sep. 2014 ) + 996.192 (Dec. 2014 ) + 1022.532 (Mar. 2015 ) = $3,970 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.

Torchmark Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev 6,7816,9726,3734,6514,2055,1405,2746,0218,1018,079

Torchmark Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev 6,0216,7127,1587,6108,1018,0508,3287,9068,0798,104
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK