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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
Enterprise Value
$107,095 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, Taiwan Semiconductor Manufacturing Co Ltd's enterprise value is $107,095 Mil. Taiwan Semiconductor Manufacturing Co Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $11,065 Mil. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's EV/EBIT ratio for today is 9.68.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Taiwan Semiconductor Manufacturing Co Ltd's enterprise value is $107,095 Mil. Taiwan Semiconductor Manufacturing Co Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $18,029 Mil. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's EV/EBITDA ratio for today is 5.94.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Taiwan Semiconductor Manufacturing Co Ltd's enterprise value is $107,095 Mil. Taiwan Semiconductor Manufacturing Co Ltd's revenue for the trailing twelve months (TTM) ended in Mar. 2015 was $27,200 Mil. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's EV/Revenue ratio for today is 3.94.


Definition

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

Taiwan Semiconductor Manufacturing Co Ltd'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
=116059.9944+0+6842.19776154
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1153.31128257+4.05717037883-14047.0274529
=110,013

Taiwan Semiconductor Manufacturing Co Ltd'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
=121768.6888+0+6808.54447774
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+594.295952058+2.29828679759-16633.3041014
=112,541

* 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.

Taiwan Semiconductor Manufacturing Co Ltd's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=107095.112/11065.1557778
=9.68

Taiwan Semiconductor Manufacturing Co Ltd's current Enterprise Value is $107,095 Mil.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 2497.48482828 (Jun. 2014 ) + 2860.74959344 (Sep. 2014 ) + 2874.2871086 (Dec. 2014 ) + 2832.63424751 (Mar. 2015 ) = $11,065 Mil.

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

Taiwan Semiconductor Manufacturing Co Ltd's EV/EBITDA for today is:

Taiwan Semiconductor Manufacturing Co Ltd's current Enterprise Value is $107,095 Mil.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 4030.633011 (Jun. 2014 ) + 4727.01911652 (Sep. 2014 ) + 4673.77747441 (Dec. 2014 ) + 4597.30258094 (Mar. 2015 ) = $18,029 Mil.

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

Taiwan Semiconductor Manufacturing Co Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=107095.112/27200.4428351
=3.94

Taiwan Semiconductor Manufacturing Co Ltd's current Enterprise Value is $107,095 Mil.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 6102.57135712 (Jun. 2014 ) + 6937.92200724 (Sep. 2014 ) + 7098.01217789 (Dec. 2014 ) + 7061.93729285 (Mar. 2015 ) = $27,200 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.

Taiwan Semiconductor Manufacturing Co Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev 45,33150,67546,28434,91453,46860,51863,10787,87489,822110,013

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev 87,87488,30494,13388,31689,822103,891108,625103,167110,013112,541
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