NovoCure (NAS:NVCR) Enterprise Value

: $1,496.4 Mil (As of Today)

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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, NovoCure's Enterprise Value is $1,496.4 Mil. NovoCure's EBIT for the trailing twelve months (TTM) ended in Jun. 2023 was $-179.5 Mil. Therefore, NovoCure's EV-to-EBIT ratio for today is -8.34.

EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, NovoCure's Enterprise Value is $1,496.4 Mil. NovoCure's EBITDA for the trailing twelve months (TTM) ended in Jun. 2023 was $-168.7 Mil. Therefore, NovoCure's EV-to-EBITDA ratio for today is -8.87.

EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, NovoCure's Enterprise Value is $1,496.4 Mil. NovoCure's Revenue for the trailing twelve months (TTM) ended in Jun. 2023 was $507.7 Mil. Therefore, NovoCure's EV-to-Revenue ratio for today is 2.95.

NovoCure Enterprise Value Historical Data

The historical data trend for NovoCure'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.

* Premium members only.

NovoCure Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Enterprise Value

3,025.54

8,224.73

17,309.50

7,443.66

7,320.19

NovoCure Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Enterprise Value																6,907.30	7,582.75	7,320.19	6,014.35	4,070.77

Competitive Comparison

For the Medical Devices subindustry, NovoCure'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.

Annual Data Quarterly Data

NovoCure Enterprise Value Distribution

For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Enterprise Value distribution charts can be found below:

* The bar in red indicates where NovoCure's Enterprise Value falls in comparison to its industry or sector. The grey bar indicates the Enterprise Value's extreme value range as defined by GuruFocus.

NovoCure 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.

NovoCure's Enterprise Value for the fiscal year that ended in Dec. 2022 is calculated as

	Enterprise Value (A: Dec. 2022 )
=	Market Cap	+	Preferred Stock	+	Long-Term Debt & Capital Lease Obligation
=	7705.34415	+	0	+	584.271
+	Short-Term Debt & Capital Lease Obligation	+	Minority Interest	-	Cash, Cash Equivalents, Marketable Securities
+	0	+	0	-	969.425
=	7,320.2

NovoCure's Enterprise Value for the quarter that ended in Jun. 2023 is calculated as

	Enterprise Value (Q: Jun. 2023 )
=	Market Cap	+	Preferred Stock	+	Long-Term Debt & Capital Lease Obligation
=	4424.1075	+	0	+	587.479
+	Short-Term Debt & Capital Lease Obligation	+	Minority Interest	-	Cash, Cash Equivalents, Marketable Securities
+	0	+	0	-	940.815
=	4,070.8

NovoCure (NAS:NVCR) 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.

NovoCure's EV-to-EBIT for today is

EV-to-EBIT	=	Enterprise Value (Today)	/	EBIT (TTM)
	=	1496.449	/	-179.487
	=	-8.34

NovoCure's current Enterprise Value is $1,496.4 Mil.
NovoCure's EBIT for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-179.5 Mil.

2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.

NovoCure's EV-to-EBITDA for today is:

EV-to-EBITDA	=	Enterprise Value (Today)	/	EBITDA(TTM)
	=	1496.449	/	-168.685
	=	-8.87

NovoCure's current Enterprise Value is $1,496.4 Mil.
NovoCure's EBITDA for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-168.7 Mil.

3. EV-to-Revenue is calculated as Enterprise Value divided by its Revenue.

NovoCure's EV-to-Revenue for today is:

EV-to-Revenue	=	Enterprise Value (Today)	/	Revenue (TTM)
	=	1496.449	/	507.66
	=	2.95

NovoCure's current Enterprise Value is $1,496.4 Mil.
NovoCure's Revenue for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $507.7 Mil.

NovoCure Enterprise Value Related Terms

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NovoCure (NAS:NVCR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » NovoCure Ltd (NAS:NVCR) » Definitions » Enterprise Value

Comparable Companies

Traded in Other Exchanges

NVCR:Mexico 038:Germany

Address

Grenville Street, No. 4 The Forum, Second Floor, St. Helier, JEY, JE2 4UF

Website

https://www.novocure.com

NovoCure Ltd serves in the healthcare sector of the United States. Its business involves the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune and Optune Lua, for the treatment of solid tumor cancers. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. Products are comprised of two main components: electric field generator and arrays and related accessories. NovoCure derives its major revenues in the United States.

Executives

Arye Barak Ben	officer: General Counsel	TOPAZ BUILDING, 4TH FLOOR, MATAM CENTER, PO BOX 15022, SH'AR HACARMEL, HAIFA L3 31905
Timothy J Scannell	director	2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Kristin Stafford	director	1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Uri Weinberg	officer: Chief Innovation Officer	NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Frank X Leonard	officer: President, CNS Cancers US	20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Ashley Cordova	officer: Chief Financial Officer	20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
William Patrick Burke	officer: Chief Human Resources Officer	195 COMMERCE WAY, PORTSMOUTH NH 03801
Allyson J Ocean	director	1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Ely Benaim	officer: Chief Medical Officer	C/O REXAHN PHARMACEUTICALS, INC., 15245 SHADY GROVE ROAD, SUITE 455, ROCKVILLE MD 20850
Jeryl L Hilleman	director	C/O INTERSECT ENT, INC., 1555 ADAMS DRIVE, MENLO PARK CA 94025
Pritesh Shah	officer: Chief Commercial Officer	C/O NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Sherilyn S Mccoy	director	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
David Hung	director	C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, 5TH FLOOR, NEW YORK NY 10018
Martin J. Madden	director	C/O MICROBOT MEDICAL INC., 175 DERBY STREET 27/1, HINGHAM MA 02043
Pomona Secondary Associates Vii Llc	10 percent owner	780 THIRD AVENUE, 46TH FLOOR, NEW YORK NY 10017