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, ITC Holdings's Enterprise Value is $6,978 Mil.
ITC Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2016 was $560 Mil. Therefore, ITC Holdings's EV-to-EBIT ratio for today is 12.46.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, ITC Holdings's Enterprise Value is $6,978 Mil.
ITC Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2016 was $713 Mil. Therefore, ITC Holdings's EV-to-EBITDA ratio for today is 9.79.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, ITC Holdings's Enterprise Value is $6,978 Mil.
ITC Holdings's Revenue for the trailing twelve months (TTM) ended in Jun. 2016 was $1,075 Mil. Therefore, ITC Holdings's EV-to-Revenue ratio for today is 6.49.
ITC Holdings Enterprise Value Historical Data
The historical data trend for ITC Holdings'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 ITC Holdings's Enterprise Value
For the Utilities - Regulated Electric subindustry, ITC Holdings'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.
ITC Holdings's Enterprise Value Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ITC Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where ITC Holdings's Enterprise Value falls into.
ITC Holdings 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.
ITC Holdings's Enterprise Value for the fiscal year that ended in Dec. 2015 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.
ITC Holdings (NYSE:ITC) 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.
ITC Holdings's current Enterprise Value is $6,978 Mil.
ITC Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $560 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
ITC Holdings's current Enterprise Value is $6,978 Mil.
ITC Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $713 Mil.
ITC Holdings's current Enterprise Value is $6,978 Mil.
ITC Holdings's Revenue for the trailing twelve months (TTM) ended in Jun. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,075 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.
ITC Holdings Enterprise Value Related Terms
Thank you for viewing the detailed overview of ITC Holdings's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
ITC Holdings Corp was incorporated in 2002 in the State of Michigan for the purpose of acquiring ITC Transmission. The Company, along with its subsidiaries, is engaged in transmission of electricity in the United States. Through its operating subsidiaries, ITCTransmission, METC, ITC Midwest and ITC Great Plains, it operates high-voltage systems in Michigan's Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma that transmit electricity from generating stations to local distribution facilities connected to its systems. The Company operates, maintains and invests in transmission infrastructure in order to enhance system integrity and reliability, reduces transmission constraints and allows new generating resources to interconnect to its transmission systems. Its Regulated Operating Subsidiaries are independent electric transmission utilities, with rates regulated by the FERC and established on a cost-of-service model. The Company's Regulated Operating Subsidiaries earns revenues through tariff rates charged for the use of their electric transmission systems by its customers, which include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. The Company's operations are subject to federal, state and local environmental laws and regulations, which impose limitations on the discharge of pollutants into the environment, establish standards for the management, treatment, storage, transportation and disposal of hazardous materials and of solid and hazardous wastes, and impose obligations to investigate and remediate contamination in certain circumstances.
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