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The Valspar Corp (NYSE:VAL)
Enterprise Value
$9,895 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, The Valspar Corp's enterprise value is $9,895 Mil. The Valspar Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2016 was $560 Mil. Therefore, The Valspar Corp's EV/EBIT ratio for today is 17.65.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, The Valspar Corp's enterprise value is $9,895 Mil. The Valspar Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2016 was $656 Mil. Therefore, The Valspar Corp's EV/EBITDA ratio for today is 15.08.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, The Valspar Corp's enterprise value is $9,895 Mil. The Valspar Corp's revenue for the trailing twelve months (TTM) ended in Jul. 2016 was $4,234 Mil. Therefore, The Valspar Corp'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.

The Valspar Corp's Enterprise Value for the fiscal year that ended in Oct. 2015 is calculated as

Enterprise Value (A: Oct. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=6393.431+0+1706.933
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+334.153+0-185.961
=8,249

The Valspar Corp's Enterprise Value for the quarter that ended in Jul. 2016 is calculated as

Enterprise Value (Q: Jul. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=8447.3298+0+1557.001
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+392.309+0-170.223
=10,226

* 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.

The Valspar Corp's EV/EBIT for today is

The Valspar Corp's current Enterprise Value is $9,895 Mil.
The Valspar Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2016 was 166.955 (Oct. 2015 ) + 93.093 (Jan. 2016 ) + 130.174 (Apr. 2016 ) + 170.238 (Jul. 2016 ) = $560 Mil.

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

The Valspar Corp's EV/EBITDA for today is:

The Valspar Corp's current Enterprise Value is $9,895 Mil.
The Valspar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2016 was 191.5 (Oct. 2015 ) + 116.114 (Jan. 2016 ) + 154.836 (Apr. 2016 ) + 193.718 (Jul. 2016 ) = $656 Mil.

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

The Valspar Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9894.577/4234.033
=2.34

The Valspar Corp's current Enterprise Value is $9,895 Mil.
The Valspar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2016 was 1149.538 (Oct. 2015 ) + 885.756 (Jan. 2016 ) + 1056.797 (Apr. 2016 ) + 1141.942 (Jul. 2016 ) = $4,234 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.

The Valspar Corp Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ev 3,4813,4502,8733,2163,9304,1415,9507,2658,1838,249

The Valspar Corp Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
ev 7,6507,7218,1838,3178,2298,6418,2498,08410,39610,226
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