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Bank of America Corporation  (NYSE:BAC) Enterprise Value: $379,457 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-to-EBIT is calculated as enterprise value divided by its EBIT. As of today, Bank of America Corporation's enterprise value is $379,457 Mil. Bank of America Corporation's EBIT for the trailing twelve months (TTM) ended in Sep. 2017 was $28,863 Mil. Therefore, Bank of America Corporation's EV/EBIT ratio for today is 13.15.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Bank of America Corporation's enterprise value is $379,457 Mil. Bank of America Corporation's EBITDA for the trailing twelve months (TTM) ended in Sep. 2017 was $31,000 Mil. Therefore, Bank of America Corporation's EV/EBITDA ratio for today is 12.24.

EV-to-Revenue is calculated as enterprise value divided by its Revenue. As of today, Bank of America Corporation's enterprise value is $379,457 Mil. Bank of America Corporation's Revenue for the trailing twelve months (TTM) ended in Sep. 2017 was $86,906 Mil. Therefore, Bank of America Corporation's EV/Revenue ratio for today is 4.37.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Bank of America Corporation Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 320,773.60 331,077.48 335,661.90 294,737.94 330,551.12

Bank of America Corporation Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 283,743.25 330,551.12 346,956.66 356,424.19 366,786.29

Competitive Comparison
* 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.


Calculation

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

Bank of America Corporation's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=222163.123+25220+216823
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+23944+0-157599
=330,551

Bank of America Corporation's Enterprise Value for the quarter that ended in Sep. 2017 is calculated as

Enterprise Value (Q: Sep. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=264992.2898+22323+228666
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+32679+0-181874
=366,786

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 (M) 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 (M), 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 (M). 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.

Bank of America Corporation's EV/EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=379456.936/28863
=13.15

Bank of America Corporation's current Enterprise Value is $379,457 Mil.
Bank of America Corporation's EBIT for the trailing twelve months (TTM) ended in Sep. 2017 was 6055 (Dec. 2016 ) + 6565 (Mar. 2017 ) + 8377 (Jun. 2017 ) + 7866 (Sep. 2017 ) = $28,863 Mil.

2. EV-to-EBITDA is calculated as enterprise value divided by its EBITDA.

Bank of America Corporation's EV/EBITDA for today is:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=379456.936/31000
=12.24

Bank of America Corporation's current Enterprise Value is $379,457 Mil.
Bank of America Corporation's EBITDA for the trailing twelve months (TTM) ended in Sep. 2017 was 6604 (Dec. 2016 ) + 7099 (Mar. 2017 ) + 8908 (Jun. 2017 ) + 8389 (Sep. 2017 ) = $31,000 Mil.

3. EV-to-Revenue is calculated as enterprise value divided by its Revenue.

Bank of America Corporation's EV/Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=379456.936/86906
=4.37

Bank of America Corporation's current Enterprise Value is $379,457 Mil.
Bank of America Corporation's EBITDA for the trailing twelve months (TTM) ended in Sep. 2017 was 19990 (Dec. 2016 ) + 22248 (Mar. 2017 ) + 22829 (Jun. 2017 ) + 21839 (Sep. 2017 ) = $86,906 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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