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, ReadSoft AB's Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's EBIT for the trailing twelve months (TTM) ended in Jun. 2014 was kr20.9 Mil. Therefore, ReadSoft AB's EV-to-EBIT ratio for today is 82.25.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, ReadSoft AB's Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's EBITDA for the trailing twelve months (TTM) ended in Jun. 2014 was kr100.6 Mil. Therefore, ReadSoft AB's EV-to-EBITDA ratio for today is 17.11.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, ReadSoft AB's Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's Revenue for the trailing twelve months (TTM) ended in Jun. 2014 was kr793.9 Mil. Therefore, ReadSoft AB's EV-to-Revenue ratio for today is 2.17.
EV-to-FCF is calculated as Enterprise Value divided by its Free Cash Flow. As of today, ReadSoft AB's Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2014 was kr84.2 Mil. Therefore, ReadSoft AB's EV-to-FCF ratio for today is 20.44.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
ReadSoft AB Enterprise Value Historical Data
The historical data trend for ReadSoft AB'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 ReadSoft AB's Enterprise Value
For the Software - Application subindustry, ReadSoft AB'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.
ReadSoft AB's Enterprise Value Distribution in the Software Industry
For the Software industry and Technology sector, ReadSoft AB's Enterprise Value distribution charts can be found below:
* The bar in red indicates where ReadSoft AB's Enterprise Value falls into.
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
ReadSoft AB's Enterprise Value for the fiscal year that ended in Dec. 2013 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.
ReadSoft AB (OSTO:RSOF B) 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.
ReadSoft AB's current Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's EBIT for the trailing twelve months (TTM) ended in Jun. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was kr20.9 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
ReadSoft AB's current Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's EBITDA for the trailing twelve months (TTM) ended in Jun. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was kr100.6 Mil.
ReadSoft AB's current Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's Revenue for the trailing twelve months (TTM) ended in Jun. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was kr793.9 Mil.
ReadSoft AB's current Enterprise Value is kr1,721.5 Mil.
ReadSoft AB's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was kr84.2 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.
ReadSoft AB Enterprise Value Related Terms
Thank you for viewing the detailed overview of ReadSoft AB's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
ReadSoft AB is a Sweden-based company that creates and markets software and services for document automation, processes such as data entry, information verification, document workflows, and e-voicing. The company operates in over 16 countries worldwide, with partnerships in an additional 70. The company offers solutions primarily for industries such as banking, manufacturing, service bureaus, market research, insurance, government, and medical. Major customers include IKEA, Audi, Porsche, Yves Rocher, Swedish Tax, DaimlerChrysler, HSBS Bank, Avon, Bosch, London Underground, New York Transit, Toyota, Volvo, Monoprix, Ericsson, and ING. The company is headquartered in Helsingborg, Sweden. The company offers ReadSoft DOCUMENTS, a complete software platform for document automation. The product incorporates five Automation Areas: Capture, capturing the information in any format and making it ready for electronic processing; Understand, enabling the computer to read, sort, interpret, extract, and index documents electronically; Manage, providing customers with control of electronic documents, including the verification and quality control with archiving and monitoring capabilities; Integrate, integration with the business software; and Interchange, Electronic Data Interchange. Capabilities within each Automation Area are customized to the needs of the customer, and solutions can be expanded to include any required extra capabilities. Also, this software can be integrated with systems such as SAP and Oracle E-Business Suite, Intentia, and IFS. ReadSoft business solutions for specific areas include: ReadSoft Documents for Mailrooms, Documents for EDI, Documents for Invoices, and Documents for Forms. Additionally, the company offers Professional Services such as project management and customization, Solution Optimization, Training, and Technical Support.
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