Enterprise Value (EV)
Current Enterprise Value (EV)
NXP Semiconductors N.V., current enterprise value calculation
| Current share price (P) | $174.46 |
| No. shares of common stock outstanding | 262,598,471 |
| US$ in millions | |
| Common equity (market value)1 | 45,813) |
| Add: Preferred stock, par value €0.20 per share; none issued (per books) | —) |
| Add: Non-controlling interests (per books) | 242) |
| Total equity | 46,055) |
| Add: Short-term debt (per books) | —) |
| Add: Long-term debt (per books) | 10,572) |
| Total equity and debt | 56,627) |
| Less: Cash and cash equivalents | 2,830) |
| Enterprise value (EV) | 53,797) |
Based on: 10-K (reporting date: 2021-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 174.46 × 262,598,471
Historical Enterprise Value (EV)
NXP Semiconductors N.V., EV calculation
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of NXP Semiconductors N.V. Annual Report.
3 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 191.42 × 262,538,156
The financial trajectory between 2017 and 2021 is characterized by an initial contraction followed by a period of significant expansion. A notable V-shaped recovery is evident, with a low point occurring in 2018 and a substantial surge in valuation during 2020.
- Enterprise Value (EV) Evolution
- Enterprise value experienced a decline of approximately 24.7% between 2017 and 2018, falling from 42,945 million USD to 32,345 million USD. This was followed by a consistent upward trend, with the most aggressive growth occurring between 2019 and 2020, where the EV increased by 42.5% to reach 54,993 million USD. By the end of 2021, the EV reached its peak for the period at 58,239 million USD.
- Equity Market Valuation and Book Value Correlation
- A high degree of correlation is observed between common equity market value and total equity. Throughout the five-year period, market value closely tracked book value, suggesting that the market consistently valued the entity near its accounting equity. Both metrics saw a sharp decrease in 2018 and a significant recovery by 2020, with common equity market value rising from 27,595 million USD in 2018 to 50,255 million USD in 2021.
- Capital Structure and Valuation Gap
- Total equity and debt remained consistently higher than the Enterprise Value across all reported years. This disparity indicates the presence of significant cash and cash equivalents, which reduce the total cost to acquire the business. The gap between total equity and debt and EV remained relatively stable, though the absolute difference grew as the overall scale of the company increased, reaching 2,830 million USD by December 31, 2021.
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