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GuruFocus has detected 3 Warning Signs with TechnipFMC PLC $FTI.
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TechnipFMC PLC (NYSE:FTI)
Enterprise Value
$8,929 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, TechnipFMC PLC's enterprise value is $8,929 Mil. TechnipFMC PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $742 Mil. Therefore, TechnipFMC PLC's EV/EBIT ratio for today is 12.03.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, TechnipFMC PLC's enterprise value is $8,929 Mil. TechnipFMC PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,121 Mil. Therefore, TechnipFMC PLC's EV/EBITDA ratio for today is 7.96.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, TechnipFMC PLC's enterprise value is $8,929 Mil. TechnipFMC PLC's revenue for the trailing twelve months (TTM) ended in Mar. 2017 was $12,192 Mil. Therefore, TechnipFMC PLC's EV/Revenue ratio for today is 0.73.


Definition

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

TechnipFMC PLC's Enterprise Value for the fiscal year that ended in Dec. 2015 is calculated as

Enterprise Value (A: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=6004.814+0+1771.24183007
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+1020.80610022+9.25925925926-3231.1546841
=5,575

TechnipFMC PLC'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
=15164.5+0+3085.40427807
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+499.421390374+6.40534759358-7047.64919786
=11,708

* 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.

TechnipFMC PLC's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=8929.186/742.21334168
=12.03

TechnipFMC PLC's current Enterprise Value is $8,929 Mil.
TechnipFMC PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 192.979955457 (Mar. 2016 ) + 211.123595506 (Jun. 2016 ) + 295.173961841 (Sep. 2016 ) + 42.935828877 (Mar. 2017 ) = $742 Mil.

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

TechnipFMC PLC's EV/EBITDA for today is:

TechnipFMC PLC's current Enterprise Value is $8,929 Mil.
TechnipFMC PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 266.280623608 (Mar. 2016 ) + 286.37752809 (Jun. 2016 ) + 371.604938272 (Sep. 2016 ) + 197.16684492 (Mar. 2017 ) = $1,121 Mil.

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

TechnipFMC PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=8929.186/12191.7687774
=0.73

TechnipFMC PLC's current Enterprise Value is $8,929 Mil.
TechnipFMC PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 2363.80066815 (Mar. 2016 ) + 3160.56179775 (Jun. 2016 ) + 3276.54320988 (Sep. 2016 ) + 3390.8631016 (Mar. 2017 ) = $12,192 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.

TechnipFMC PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev 7863,1892865,1047,8898,9529,0598,9696,6995,575

TechnipFMC PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Mar17
ev 8,5236,6996,0127,8224,0155,5754,6034,2235,35511,708
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