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Western Digital Corporation (NAS:WDC)
Enterprise Value
$17,512 Mil (As of Dec. 2013)

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, Western Digital Corporation's enterprise value is $19,197 Mil. Western Digital Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,216 Mil. Therefore, Western Digital Corporation's EV/EBIT ratio for today is 15.79.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Western Digital Corporation's enterprise value is $19,197 Mil. Western Digital Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $2,468 Mil. Therefore, Western Digital Corporation's EV/EBITDA ratio for today is 7.78.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Western Digital Corporation's enterprise value is $19,197 Mil. Western Digital Corporation's revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $15,268 Mil. Therefore, Western Digital Corporation's EV/Revenue ratio for today is 1.26.


Definition

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

Western Digital Corporation's Enterprise Value for the fiscal year that ended in Jun. 2013 is calculated as

Enterprise Value (A: Jun. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=14715.33+0+1725
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+230+0-4309
=12,361

Western Digital Corporation's Enterprise Value for the quarter that ended in Dec. 2013 is calculated as

Enterprise Value (Q: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=19827.248+0+1610
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+730+0-4655
=17,512

* 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.

Western Digital Corporation's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=19196.617/1216
=15.79

Western Digital Corporation's current Enterprise Value is $19,197 Mil.
Western Digital Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 417 (Mar. 2013 ) + -221 (Jun. 2013 ) + 542 (Sep. 2013 ) + 478 (Dec. 2013 ) = $1,216 Mil.

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

Western Digital Corporation's EV/EBITDA for today is:

Western Digital Corporation's current Enterprise Value is $19,197 Mil.
Western Digital Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 729 (Mar. 2013 ) + 84 (Jun. 2013 ) + 857 (Sep. 2013 ) + 798 (Dec. 2013 ) = $2,468 Mil.

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

Western Digital Corporation's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=19196.617/15268
=1.26

Western Digital Corporation's current Enterprise Value is $19,197 Mil.
Western Digital Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 3764 (Mar. 2013 ) + 3728 (Jun. 2013 ) + 3804 (Sep. 2013 ) + 3972 (Dec. 2013 ) = $15,268 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.

Western Digital Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev 1,4962,3113,7173,3537,0504,5954,5785,2596,47512,361

Western Digital Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev 2,6063,58010,1696,4758,0888,5529,92212,36112,49117,512
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