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, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Rolls-Royce Holdings's Enterprise Value is £37,013 Mil.
Rolls-Royce Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was £2,796 Mil. Therefore, Rolls-Royce Holdings's EV-to-EBIT ratio for today is 13.24.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Rolls-Royce Holdings's Enterprise Value is £37,013 Mil.
Rolls-Royce Holdings's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was £3,744 Mil. Therefore, Rolls-Royce Holdings's EV-to-EBITDA ratio for today is 9.89.
Rolls-Royce Holdings Enterprise Value Historical Data
The historical data trend for Rolls-Royce Holdings's Enterprise Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Rolls-Royce Holdings's Enterprise Value
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rolls-Royce Holdings's Enterprise Value Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's Enterprise Value falls into.
Rolls-Royce Holdings Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Rolls-Royce Holdings's Enterprise Value for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rolls-Royce Holdings (LSE:RR.) Enterprise Value 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-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Rolls-Royce Holdings's current Enterprise Value is £37,013 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was £2,796 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Rolls-Royce Holdings's current Enterprise Value is £37,013 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was £3,744 Mil.
Rolls-Royce Holdings's current Enterprise Value is £37,013 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 was £16,486 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rolls-Royce Holdings Enterprise Value Related Terms
Thank you for viewing the detailed overview of Rolls-Royce Holdings's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Rolls-Royce Holdings (LSE:RR.) Business Description
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
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