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, Broadcom's Enterprise Value is $33,294 Mil.
Broadcom's EBIT for the trailing twelve months (TTM) ended in Sep. 2015 was $1,460 Mil. Therefore, Broadcom's EV-to-EBIT ratio for today is 22.80.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Broadcom's Enterprise Value is $33,294 Mil.
Broadcom's EBITDA for the trailing twelve months (TTM) ended in Sep. 2015 was $1,766 Mil. Therefore, Broadcom's EV-to-EBITDA ratio for today is 18.85.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Broadcom's Enterprise Value is $33,294 Mil.
Broadcom's Revenue for the trailing twelve months (TTM) ended in Sep. 2015 was $8,484 Mil. Therefore, Broadcom's EV-to-Revenue ratio for today is 3.92.
Broadcom Enterprise Value Historical Data
The historical data trend for Broadcom'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 Broadcom's Enterprise Value
For the Semiconductors subindustry, Broadcom'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.
Broadcom's Enterprise Value Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Broadcom's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Broadcom's Enterprise Value falls into.
Broadcom 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.
Broadcom's Enterprise Value for the fiscal year that ended in Dec. 2014 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.
Broadcom (NAS:BRCM) 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.
Broadcom's current Enterprise Value is $33,294 Mil.
Broadcom's EBIT for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,460 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Broadcom's current Enterprise Value is $33,294 Mil.
Broadcom's EBITDA for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,766 Mil.
Broadcom's current Enterprise Value is $33,294 Mil.
Broadcom's Revenue for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,484 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.
Broadcom Enterprise Value Related Terms
Thank you for viewing the detailed overview of Broadcom's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Broadcom Corp was incorporated in California in August 16, 1991. The Company is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. Its business segments include Broadband and Connectivity; and Infrastructure and Networking. The solutions in Broadband and Connectivity segment include set-top box solutions, broadband modem solutions, connectivity solutions, and a range of other technologies. Customer products incorporating its solutions in Broadband and Connectivity segment include set-top boxes, or STBs, central office broadband access equipment, residential gateways, stand-alone broadband access modems, and a range of consumer devices, including smartphones and tablets, wearable devices, PCs, laptops, access points, and others. It offers complete platform solutions for cable, satellite, Internet Protocol, over-the-top and terrestrial STBs. Its solutions in Infrastructure and Networking segment include Ethernet switches and PHYs, which includes switches and fabrics; copper and optical transceivers; backplane and optical front-end physical layer devices; processors (including multicore processors); and other Infrastructure and Networking technologies (including knowledge-based processors, VoIP solutions, microwave backhaul solutions and radio head digital front ends). It also offers a family of Ethernet controllers. Customer products incorporating its solutions in Infrastructure and Networking segment include service provider metro equipment; edge and core routers, wireless infrastructure and wireless access points; switches and routers; servers and workstations; network interface cards; LAN on motherboard applications; optical networks and dense wave division multiplexing applications; security appliances; storage controllers; microwave links for wireless backhaul; cellular remote radio heads; automobile Ethernet networks; point-of-sale equipment; and other embedded SoC subsystems. Its customers shipping wired and/or wireless communications equipment and devices incorporating its products include Alcatel-Lucent, Apple, Arris, Cisco, Huawei Technologies, Humax, Pace, Samsung, Technicolor, ZTE. Its trademark includes Broadcom and BroadR-Reach. The Company's competitors include Intel Corporation, Marvell Technology Group Ltd., Mediatek Inc., Qualcomm Incorporation, and STMicroelectronics NV with respect to Broadband and Connectivity segment; and Cavium, Inc., Freescale Semiconductor,Ltd., Intel Corporation, Marvell Technology Group Ltd., and Mellanox with respect to Infrastructure and Networking segment. The Company's production is subject to environmental rules and regulations.
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