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, Hammond Power Solutions's Enterprise Value is C$1,505.6 Mil.
Hammond Power Solutions's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 was C$90.6 Mil. Therefore, Hammond Power Solutions's EV-to-EBIT ratio for today is 16.63.
* 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 Hammond Power Solutions's Enterprise Value
For the Electrical Equipment & Parts subindustry, Hammond Power Solutions'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.
Hammond Power Solutions's Enterprise Value Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Enterprise Value falls into.
Hammond Power Solutions 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.
Hammond Power Solutions'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.
Hammond Power Solutions (TSX:HPS.A) 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.
Hammond Power Solutions's current Enterprise Value is C$1,505.6 Mil.
Hammond Power Solutions's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$90.6 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Hammond Power Solutions's EV-to-EBITDA for today is:
Hammond Power Solutions's current Enterprise Value is C$1,505.6 Mil.
Hammond Power Solutions's EBITDA for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$105.7 Mil.
Hammond Power Solutions's current Enterprise Value is C$1,505.6 Mil.
Hammond Power Solutions's Revenue for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was C$766.8 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.
Hammond Power Solutions Enterprise Value Related Terms
Thank you for viewing the detailed overview of Hammond Power Solutions's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Hammond Power Solutions Inc is engaged in designing and manufacturing custom electrical magnetics, cast resin, custom liquid-filled distribution and power transformers, and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India from which it derives majority revenue in the United States and Mexico.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSX:HPS.A has been successfully added to your 