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Wells Fargo & Co (NYSE:WFC)
Enterprise Value
$519,726 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, Wells Fargo & Co's enterprise value is $519,726 Mil. Wells Fargo & Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $33,559 Mil. Therefore, Wells Fargo & Co's EV/EBIT ratio for today is 15.49.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Wells Fargo & Co's enterprise value is $519,726 Mil. Wells Fargo & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $37,415 Mil. Therefore, Wells Fargo & Co's EV/EBITDA ratio for today is 13.89.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Wells Fargo & Co's enterprise value is $519,726 Mil. Wells Fargo & Co's revenue for the trailing twelve months (TTM) ended in Mar. 2016 was $86,974 Mil. Therefore, Wells Fargo & Co's EV/Revenue ratio for today is 5.98.


Definition

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

Wells Fargo & Co's Enterprise Value for the fiscal year that ended in Dec. 2015 is calculated as

Enterprise Value (A: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=276808.1868+22214+199536
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+97528+893-19111
=577,868

Wells Fargo & Co's Enterprise Value for the quarter that ended in Mar. 2016 is calculated as

Enterprise Value (Q: Mar. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt
=245509.6956+24051+227888
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+107703+1008-98432
=507,728

* 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.

Wells Fargo & Co's EV/EBIT for today is

Wells Fargo & Co's current Enterprise Value is $519,726 Mil.
Wells Fargo & Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 8549 (Jun. 2015 ) + 8773 (Sep. 2015 ) + 8156 (Dec. 2015 ) + 8081 (Mar. 2016 ) = $33,559 Mil.

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

Wells Fargo & Co's EV/EBITDA for today is:

Wells Fargo & Co's current Enterprise Value is $519,726 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 9380 (Jun. 2015 ) + 9611 (Sep. 2015 ) + 9048 (Dec. 2015 ) + 9376 (Mar. 2016 ) = $37,415 Mil.

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

Wells Fargo & Co's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=519725.870/86974
=5.98

Wells Fargo & Co's current Enterprise Value is $519,726 Mil.
Wells Fargo & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 21318 (Jun. 2015 ) + 21875 (Sep. 2015 ) + 21586 (Dec. 2015 ) + 22195 (Mar. 2016 ) = $86,974 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.

Wells Fargo & Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev 206,190237,880484,061366,576369,588312,920356,936442,770531,410577,868

Wells Fargo & Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev 442,770453,001474,357251,697531,410478,093475,060541,684577,868507,728
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