Enterprise Value (EV)
Difficulty: Intermediate
Current Enterprise Value (EV)
Bristol-Myers Squibb Co., current enterprise value calculation
| Current share price (P) | $ 52.34 |
| No. shares of common stock outstanding | 1,634,538,458 |
| USD $ in millions | |
| Common equity (market value) | 85,552 |
| Add: Preferred stock, $2 convertible series, par value $1 per share (per books) | – |
| Add: Noncontrolling interest (per books) | 106 |
| Total equity | 85,658 |
| Add: Short-term debt obligations (per books) | 987 |
| Add: Long-term debt, excluding current portion (per books) | 6,975 |
| Total equity and debt | 93,620 |
| Less: Cash and cash equivalents | 5,421 |
| Less: Marketable securities | 1,391 |
| Enterprise value (EV) | 86,808 |
Historical Enterprise Value (EV)
Bristol-Myers Squibb Co., EV calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,632,582,502 | 1,672,715,340 | 1,669,459,090 | 1,662,118,446 | 1,650,232,566 | |
| Share price1, 2 (USD $) | 63.87 | 54.78 | 60.20 | 60.04 | 54.37 | |
| USD $ in millions | ||||||
| | Common equity (market value) | 104,273 | 91,631 | 100,501 | 99,794 | 89,723 |
| | Add: Preferred stock, $2 convertible series, par value $1 per share (per books) | – | – | – | – | – |
| | Add: Noncontrolling interest (per books) | 106 | 170 | 158 | 131 | 82 |
| | Total equity | 104,379 | 91,801 | 100,659 | 99,925 | 89,805 |
| | Add: Short-term debt obligations (per books) | 987 | 992 | 139 | 590 | 359 |
| | Add: Long-term debt, excluding current portion (per books) | 6,975 | 5,716 | 6,550 | 7,242 | 7,981 |
| | Total equity and debt | 112,341 | 98,509 | 107,348 | 107,757 | 98,145 |
| | Less: Cash and cash equivalents | 5,421 | 4,237 | 2,385 | 5,571 | 3,586 |
| | Less: Marketable securities | 1,391 | 2,113 | 1,885 | 1,864 | 939 |
| | Enterprise value (EV) | 105,529 | 92,159 | 103,078 | 100,322 | 93,620 |
2 Close price on the filing date of Bristol-Myers Squibb Co.'s Annual Report.
| Item | Description | The company |
|---|---|---|
| EV | Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments. | Bristol-Myers Squibb Co.'s EV declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |