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McCormick & Co Inc  (NYSE:MKC) Enterprise Value: $18,227 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, McCormick & Co Inc's enterprise value is $18,227 Mil. McCormick & Co Inc's EBIT for the trailing twelve months (TTM) ended in Aug. 2017 was $644 Mil. Therefore, McCormick & Co Inc's EV/EBIT ratio for today is 28.31.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, McCormick & Co Inc's enterprise value is $18,227 Mil. McCormick & Co Inc's EBITDA for the trailing twelve months (TTM) ended in Aug. 2017 was $760 Mil. Therefore, McCormick & Co Inc's EV/EBITDA ratio for today is 23.99.

EV-to-Revenue is calculated as enterprise value divided by its Revenue. As of today, McCormick & Co Inc's enterprise value is $18,227 Mil. McCormick & Co Inc's Revenue for the trailing twelve months (TTM) ended in Aug. 2017 was $4,570 Mil. Therefore, McCormick & Co Inc's EV/Revenue ratio for today is 3.99.


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.

McCormick & Co Inc Annual Data

Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9,664.30 10,231.20 10,768.77 12,236.12 12,767.66

McCormick & Co Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 14,354.90 12,767.66 13,850.81 14,569.49 17,679.87

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.

McCormick & Co Inc's Enterprise Value for the fiscal year that ended in Nov. 2016 is calculated as

Enterprise Value (A: Nov. 2016 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=11427.36+0+1054
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+393.2+11.5-118.4
=12,768

McCormick & Co Inc's Enterprise Value for the quarter that ended in Aug. 2017 is calculated as

Enterprise Value (Q: Aug. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=12457.2735+0+4702.3
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+674.7+11.7-166.1
=17,680

* 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.

McCormick & Co Inc's EV/EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=18226.716/643.9
=28.31

McCormick & Co Inc's current Enterprise Value is $18,227 Mil.
McCormick & Co Inc's EBIT for the trailing twelve months (TTM) ended in Aug. 2017 was 221.3 (Nov. 2016 ) + 134.3 (Feb. 2017 ) + 133.8 (May. 2017 ) + 154.5 (Aug. 2017 ) = $644 Mil.

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

McCormick & Co Inc's EV/EBITDA for today is:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=18226.716/759.9
=23.99

McCormick & Co Inc's current Enterprise Value is $18,227 Mil.
McCormick & Co Inc's EBITDA for the trailing twelve months (TTM) ended in Aug. 2017 was 247.7 (Nov. 2016 ) + 162.6 (Feb. 2017 ) + 163.6 (May. 2017 ) + 186 (Aug. 2017 ) = $760 Mil.

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

McCormick & Co Inc's EV/Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=18226.716/4570.2
=3.99

McCormick & Co Inc's current Enterprise Value is $18,227 Mil.
McCormick & Co Inc's EBITDA for the trailing twelve months (TTM) ended in Aug. 2017 was 1227 (Nov. 2016 ) + 1043.7 (Feb. 2017 ) + 1114.3 (May. 2017 ) + 1185.2 (Aug. 2017 ) = $4,570 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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