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GuruFocus has detected 5 Warning Signs with Frontline Ltd $OSTO:FROO.
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Frontline Ltd (OSTO:FROo)
Enterprise Value
NOK17,935 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, Frontline Ltd's enterprise value is NOK17,935 Mil. Frontline Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was NOK1,472 Mil. Therefore, Frontline Ltd's EV/EBIT ratio for today is 12.19.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Frontline Ltd's enterprise value is NOK17,935 Mil. Frontline Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was NOK2,664 Mil. Therefore, Frontline Ltd's EV/EBITDA ratio for today is 6.73.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Frontline Ltd's enterprise value is NOK17,935 Mil. Frontline Ltd's revenue for the trailing twelve months (TTM) ended in Dec. 2016 was NOK6,332 Mil. Therefore, Frontline Ltd's EV/Revenue ratio for today is 2.83.


Definition

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

Frontline Ltd's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=9703.9995+0+10964.7859589
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+1060.53082192+1.43835616438-1888.48458904
=19,842

Frontline Ltd's Enterprise Value for the quarter that ended in Dec. 2016 is calculated as

Enterprise Value (Q: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=9703.9995+0+10964.7859589
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+1060.53082192+1.43835616438-1888.48458904
=19,842

* 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.

Frontline Ltd's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=17934.670/1471.60557828
=12.19

Frontline Ltd's current Enterprise Value is NOK17,935 Mil.
Frontline Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 787.898305085 (Mar. 2016 ) + 235.42358804 (Jun. 2016 ) + 167.204918033 (Sep. 2016 ) + 281.078767123 (Dec. 2016 ) = NOK1,472 Mil.

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

Frontline Ltd's EV/EBITDA for today is:

Frontline Ltd's current Enterprise Value is NOK17,935 Mil.
Frontline Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1110.44067797 (Mar. 2016 ) + 529.559800664 (Jun. 2016 ) + 449.762295082 (Sep. 2016 ) + 574.657534247 (Dec. 2016 ) = NOK2,664 Mil.

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

Frontline Ltd's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=17934.670/6331.88711282
=2.83

Frontline Ltd's current Enterprise Value is NOK17,935 Mil.
Frontline Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1924.60169492 (Mar. 2016 ) + 1592.65780731 (Jun. 2016 ) + 1288.17213115 (Sep. 2016 ) + 1526.45547945 (Dec. 2016 ) = NOK6,332 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.

Frontline Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev 34,94535,87727,69527,68910,0748,7719,3886,41829,23619,842

Frontline Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev 7,0006,4188,7026,4097,33029,23620,63420,89519,82119,842
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