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Toll Brothers Inc (NYSE:TOL)
Enterprise Value
$9,646 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, Toll Brothers Inc's enterprise value is $9,646 Mil. Toll Brothers Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was $503 Mil. Therefore, Toll Brothers Inc's EV/EBIT ratio for today is 19.16.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Toll Brothers Inc's enterprise value is $9,646 Mil. Toll Brothers Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2015 was $527 Mil. Therefore, Toll Brothers Inc's EV/EBITDA ratio for today is 18.30.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Toll Brothers Inc's enterprise value is $9,646 Mil. Toll Brothers Inc's revenue for the trailing twelve months (TTM) ended in Apr. 2015 was $4,114 Mil. Therefore, Toll Brothers Inc's EV/Revenue ratio for today is 2.34.


Definition

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

Toll Brothers Inc's Enterprise Value for the fiscal year that ended in Oct. 2014 is calculated as

Enterprise Value (A: Oct. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=5592.8475+0+3399.586
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+3399.586+6.321-598.341
=11,800

Toll Brothers Inc's Enterprise Value for the quarter that ended in Apr. 2015 is calculated as

Enterprise Value (Q: Apr. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=6237.9808+0+3400.667
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+7.599-542.172
=9,104

* 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.

Toll Brothers Inc's EV/EBIT for today is

Toll Brothers Inc's current Enterprise Value is $9,646 Mil.
Toll Brothers Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was 151.325 (Jul. 2014 ) + 188.538 (Oct. 2014 ) + 97.106 (Jan. 2015 ) + 66.386 (Apr. 2015 ) = $503 Mil.

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

Toll Brothers Inc's EV/EBITDA for today is:

Toll Brothers Inc's current Enterprise Value is $9,646 Mil.
Toll Brothers Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2015 was 156.92 (Jul. 2014 ) + 194.847 (Oct. 2014 ) + 102.915 (Jan. 2015 ) + 72.349 (Apr. 2015 ) = $527 Mil.

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

Toll Brothers Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9646.060/4113.582
=2.34

Toll Brothers Inc's current Enterprise Value is $9,646 Mil.
Toll Brothers Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2015 was 1056.857 (Jul. 2014 ) + 1350.69 (Oct. 2014 ) + 853.452 (Jan. 2015 ) + 852.583 (Apr. 2015 ) = $4,114 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.

Toll Brothers Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev 6,8916,1604,9654,1783,0833,4635,0666,6087,25311,800

Toll Brothers Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ev 7,7067,3559,6167,2538,4609,18611,46811,8008,9409,104
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