Enterprise Value (EV)
Current Enterprise Value (EV)
O’Reilly Automotive Inc., current enterprise value calculation
| Current share price (P) | $833.51 |
| No. shares of common stock outstanding | 62,575,911 |
| US$ in thousands | |
| Common equity (market value)1 | 52,157,648) |
| Add: Preferred stock, $0.01 par value; none issued and outstanding shares (per books) | —) |
| Total equity | 52,157,648) |
| Add: Long-term debt (per books) | 3,826,978) |
| Total equity and debt | 55,984,626) |
| Less: Cash and cash equivalents | 362,113) |
| Enterprise value (EV) | 55,622,513) |
Based on: 10-K (reporting date: 2021-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 833.51 × 62,575,911
Historical Enterprise Value (EV)
O’Reilly Automotive Inc., EV calculation
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of O’Reilly Automotive Inc. Annual Report.
3 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 649.24 × 66,600,918
The financial trajectory from 2017 to 2021 demonstrates a significant and consistent expansion in overall valuation. The company experienced a substantial increase in its market capitalization and enterprise value, reflecting strong growth in investor perception and organizational scale over the five-year period.
- Equity and Market Capitalization Trends
- Common equity market value rose from approximately US$ 20.4 billion in 2017 to US$ 43.2 billion by 2021. This growth was characterized by a sharp increase between 2017 and 2018, followed by a minor contraction in 2019, and a subsequent accelerated climb through 2021. The identical values reported for total equity and common equity market value suggest that the valuation is driven primarily by the market's assessment of the company's equity.
- Enterprise Value (EV) Progression
- Enterprise value mirrors the growth pattern of the market capitalization, increasing from US$ 23.36 billion in 2017 to US$ 46.70 billion in 2021. The most pronounced growth occurred between 2020 and 2021, where the EV increased by approximately US$ 11.6 billion. The slight dip in EV observed in 2019 aligns with the corresponding decrease in equity value during that same period, indicating a high correlation between equity market fluctuations and total enterprise valuation.
- Capital Structure and EV Correlation
- A consistent gap is observed between the total equity and debt figures and the enterprise value. In every reporting year, the enterprise value remains slightly lower than the sum of total equity and debt. This discrepancy indicates the presence of cash and cash equivalents that offset the total debt burden when calculating the net cost to acquire the business. The stability of this relationship suggests a consistent approach to liquidity management relative to the company's debt and equity growth.
Overall, the data indicates a robust upward trend in the company's total valuation, with the enterprise value more than doubling over the analyzed period. The close alignment between market equity and enterprise value suggests that the organization's valuation is predominantly driven by equity growth rather than significant changes in debt leverage.
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