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Time Warner Inc (NYSE:TWX)
Enterprise Value
$90,484 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, Time Warner Inc's enterprise value is $90,484 Mil. Time Warner Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $5,713 Mil. Therefore, Time Warner Inc's EV/EBIT ratio for today is 15.84.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Time Warner Inc's enterprise value is $90,484 Mil. Time Warner Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $6,373 Mil. Therefore, Time Warner Inc's EV/EBITDA ratio for today is 14.20.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Time Warner Inc's enterprise value is $90,484 Mil. Time Warner Inc's revenue for the trailing twelve months (TTM) ended in Mar. 2015 was $27,683 Mil. Therefore, Time Warner Inc's EV/Revenue ratio for today is 3.27.


Definition

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

Time Warner Inc'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
=71069.44+0+21376
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1118+0-2618
=90,945

Time Warner Inc'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
=69747.44+0+21172
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+1299+0-2260
=89,958

* 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.

Time Warner Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=90483.615/5713
=15.84

Time Warner Inc's current Enterprise Value is $90,484 Mil.
Time Warner Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 1567 (Jun. 2014 ) + 971 (Sep. 2014 ) + 1389 (Dec. 2014 ) + 1786 (Mar. 2015 ) = $5,713 Mil.

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

Time Warner Inc's EV/EBITDA for today is:

Time Warner Inc's current Enterprise Value is $90,484 Mil.
Time Warner Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 1796 (Jun. 2014 ) + 1058 (Sep. 2014 ) + 1629 (Dec. 2014 ) + 1890 (Mar. 2015 ) = $6,373 Mil.

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

Time Warner Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=90483.615/27683
=3.27

Time Warner Inc's current Enterprise Value is $90,484 Mil.
Time Warner Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 6788 (Jun. 2014 ) + 6243 (Sep. 2014 ) + 7525 (Dec. 2014 ) + 7127 (Mar. 2015 ) = $27,683 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.

Time Warner Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev 75,48294,83579,30447,98443,79946,78649,79259,76878,13490,945

Time Warner Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev 59,76868,48968,54974,94978,13472,23778,35882,67491,50089,958
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