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GuruFocus has detected 2 Warning Signs with CA Inc $CA.
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CA Inc (NAS:CA)
Enterprise Value
$13,344 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, CA Inc's enterprise value is $13,344 Mil. CA Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,135 Mil. Therefore, CA Inc's EV/EBIT ratio for today is 11.76.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, CA Inc's enterprise value is $13,344 Mil. CA Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,455 Mil. Therefore, CA Inc's EV/EBITDA ratio for today is 9.17.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, CA Inc's enterprise value is $13,344 Mil. CA Inc's revenue for the trailing twelve months (TTM) ended in Mar. 2017 was $4,036 Mil. Therefore, CA Inc's EV/Revenue ratio for today is 3.31.


Definition

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

CA Inc's Enterprise Value for the fiscal year that ended in Mar. 2017 is calculated as

Enterprise Value (A: Mar. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=13163.8+0+2773
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+18+0-2771
=13,184

CA Inc's Enterprise Value for the quarter that ended in Mar. 2017 is calculated as

Enterprise Value (Q: Mar. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=13163.8+0+2773
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+18+0-2771
=13,184

* 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 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.

CA Inc's EV/EBIT for today is

CA Inc's current Enterprise Value is $13,344 Mil.
CA Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 292 (Jun. 2016 ) + 347 (Sep. 2016 ) + 291 (Dec. 2016 ) + 205 (Mar. 2017 ) = $1,135 Mil.

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

CA Inc's EV/EBITDA for today is:

CA Inc's current Enterprise Value is $13,344 Mil.
CA Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 378 (Jun. 2016 ) + 424 (Sep. 2016 ) + 366 (Dec. 2016 ) + 287 (Mar. 2017 ) = $1,455 Mil.

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

CA Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=13344.060/4036
=3.31

CA Inc's current Enterprise Value is $13,344 Mil.
CA Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 999 (Jun. 2016 ) + 1018 (Sep. 2016 ) + 1007 (Dec. 2016 ) + 1012 (Mar. 2017 ) = $4,036 Mil.

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


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

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

CA Inc Annual Data

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
ev 11,2568,33310,91910,57311,4709,79812,10612,65511,84513,184

CA Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev 11,92412,65511,41511,05611,39011,84512,97413,03212,25213,184
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