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GuruFocus has detected 4 Warning Signs with FirstEnergy Corp $FE.
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FirstEnergy Corp (NYSE:FE)
Enterprise Value
$35,443 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, FirstEnergy Corp's enterprise value is $35,443 Mil. FirstEnergy Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $-8,384 Mil. Therefore, FirstEnergy Corp's EV/EBIT ratio for today is -4.23.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, FirstEnergy Corp's enterprise value is $35,443 Mil. FirstEnergy Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $-6,456 Mil. Therefore, FirstEnergy Corp's EV/EBITDA ratio for today is -5.49.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, FirstEnergy Corp's enterprise value is $35,443 Mil. FirstEnergy Corp's revenue for the trailing twelve months (TTM) ended in Mar. 2017 was $14,245 Mil. Therefore, FirstEnergy Corp's EV/Revenue ratio for today is 2.49.


Definition

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

FirstEnergy Corp's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=13199.414+0+18192
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+4360+0-199
=35,552

FirstEnergy Corp'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
=14118.534+0+17762
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+4897+0-164
=36,614

* 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.

FirstEnergy Corp's EV/EBIT for today is

FirstEnergy Corp's current Enterprise Value is $35,443 Mil.
FirstEnergy Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was -956 (Jun. 2016 ) + 889 (Sep. 2016 ) + -8915 (Dec. 2016 ) + 598 (Mar. 2017 ) = $-8,384 Mil.

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

FirstEnergy Corp's EV/EBITDA for today is:

FirstEnergy Corp's current Enterprise Value is $35,443 Mil.
FirstEnergy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was -495 (Jun. 2016 ) + 1407 (Sep. 2016 ) + -8358 (Dec. 2016 ) + 990 (Mar. 2017 ) = $-6,456 Mil.

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

FirstEnergy Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=35443.330/14245
=2.49

FirstEnergy Corp's current Enterprise Value is $35,443 Mil.
FirstEnergy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 3401 (Jun. 2016 ) + 3917 (Sep. 2016 ) + 3375 (Dec. 2016 ) + 3552 (Mar. 2017 ) = $14,245 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.

FirstEnergy Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev 30,79223,36428,20724,99935,68136,44934,24138,11535,28335,552

FirstEnergy Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev 38,11537,18336,42835,33435,28337,48837,24536,25535,55236,614
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