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, Mentor Graphics's Enterprise Value is $4,116 Mil.
Mentor Graphics's EBIT for the trailing twelve months (TTM) ended in Jan. 2017 was $205 Mil. Therefore, Mentor Graphics's EV-to-EBIT ratio for today is 20.04.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Mentor Graphics's Enterprise Value is $4,116 Mil.
Mentor Graphics's EBITDA for the trailing twelve months (TTM) ended in Jan. 2017 was $267 Mil. Therefore, Mentor Graphics's EV-to-EBITDA ratio for today is 15.40.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Mentor Graphics's Enterprise Value is $4,116 Mil.
Mentor Graphics's Revenue for the trailing twelve months (TTM) ended in Jan. 2017 was $1,282 Mil. Therefore, Mentor Graphics's EV-to-Revenue ratio for today is 3.21.
Mentor Graphics Enterprise Value Historical Data
The historical data trend for Mentor Graphics's Enterprise Value can be seen below:
* 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 Mentor Graphics's Enterprise Value
For the Software - Application subindustry, Mentor Graphics'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.
Mentor Graphics's Enterprise Value Distribution in the Software Industry
For the Software industry and Technology sector, Mentor Graphics's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Mentor Graphics's Enterprise Value falls into.
Mentor Graphics 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.
Mentor Graphics's Enterprise Value for the fiscal year that ended in Jan. 2017 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.
Mentor Graphics (NAS:MENT) 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.
Mentor Graphics's current Enterprise Value is $4,116 Mil.
Mentor Graphics's EBIT for the trailing twelve months (TTM) ended in Jan. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $205 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Mentor Graphics's current Enterprise Value is $4,116 Mil.
Mentor Graphics's EBITDA for the trailing twelve months (TTM) ended in Jan. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $267 Mil.
Mentor Graphics's current Enterprise Value is $4,116 Mil.
Mentor Graphics's Revenue for the trailing twelve months (TTM) ended in Jan. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,282 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.
Mentor Graphics Enterprise Value Related Terms
Thank you for viewing the detailed overview of Mentor Graphics's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Mentor Graphics (Mentor Graphics) Business Description
Mentor Graphics is a provider of electronic design automation technology for software and hardware design solutions. It tailors its technologies for manufacturers in a variety of end markets, including communications, consumer electronics, military and aerospace, and transportation industries. Its products enable engineers to overcome complicated electronic design challenges by improving the accuracy of complex designs. The firm generates revenue primarily through licensing its software and hardware products to manufacturers. It derives roughly half of its revenue in North America, with the rest coming from Europe, Japan, and the Pacific Rim countries.
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