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, Legg Mason's Enterprise Value is $5,666 Mil.
Legg Mason's EBIT for the trailing twelve months (TTM) ended in Jun. 2020 was $510 Mil. Therefore, Legg Mason's EV-to-EBIT ratio for today is 11.11.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Legg Mason's Enterprise Value is $5,666 Mil.
Legg Mason's EBITDA for the trailing twelve months (TTM) ended in Jun. 2020 was $580 Mil. Therefore, Legg Mason's EV-to-EBITDA ratio for today is 9.77.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Legg Mason's Enterprise Value is $5,666 Mil.
Legg Mason's Revenue for the trailing twelve months (TTM) ended in Jun. 2020 was $2,883 Mil. Therefore, Legg Mason's EV-to-Revenue ratio for today is 1.97.
Legg Mason Enterprise Value Historical Data
The historical data trend for Legg Mason'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 Legg Mason's Enterprise Value
For the Asset Management subindustry, Legg Mason'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.
Legg Mason's Enterprise Value Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Legg Mason's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Legg Mason's Enterprise Value falls into.
Legg Mason 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.
Legg Mason's Enterprise Value for the fiscal year that ended in Mar. 2020 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.
Legg Mason (NYSE:LM) 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.
Legg Mason's current Enterprise Value is $5,666 Mil.
Legg Mason's EBIT for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $510 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Legg Mason's current Enterprise Value is $5,666 Mil.
Legg Mason's EBITDA for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $580 Mil.
Legg Mason's current Enterprise Value is $5,666 Mil.
Legg Mason's Revenue for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,883 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.
Legg Mason Enterprise Value Related Terms
Thank you for viewing the detailed overview of Legg Mason's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.
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