Name: Halliburton Co. (NYSE:HAL) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Halliburton Co., current enterprise value calculation

Current share price (P)	$31.40
No. shares of common stock outstanding	872,542,842
US$ in millions
Common equity (market value)¹	27,398)
Add: Noncontrolling interest in consolidated subsidiaries (per books)	22)
Total equity	27,420)
Add: Short-term borrowings and current maturities of long-term debt (per books)	36)
Add: Long-term debt, excluding current maturities (per books)	10,421)
Total equity and debt	37,877)
Less: Cash and equivalents	2,008)
Enterprise value (EV)	35,869)

Based on: 10-K (reporting date: 2018-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 31.40 × 872,542,842

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Halliburton Co., EV calculation

	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Share price^1, 2	$31.40	$46.70	$54.88	$31.35	$43.12
No. shares of common stock outstanding¹	872,542,842	874,909,834	866,933,212	858,342,017	849,671,830
US$ in millions
Common equity (market value)³	27,398)	40,858)	47,577)	26,909)	36,638)
Add: Noncontrolling interest in consolidated subsidiaries (book value)	22)	27)	39)	33)	31)
Total equity	27,420)	40,885)	47,616)	26,942)	36,669)
Add: Short-term borrowings and current maturities of long-term debt (book value)	36)	512)	170)	659)	14)
Add: Long-term debt, excluding current maturities (book value)	10,421)	10,430)	12,214)	14,687)	7,840)
Total equity and debt	37,877)	51,827)	60,000)	42,288)	44,523)
Less: Cash and equivalents	2,008)	2,337)	4,009)	10,077)	2,291)
Enterprise value (EV)	35,869)	49,490)	55,991)	32,211)	42,232)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Halliburton Co. Annual Report.

³ 2018 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 31.40 × 872,542,842

The enterprise value (EV) exhibited significant volatility between 2014 and 2018, characterized by a contraction in 2015, a peak in 2016, and a subsequent steady decline through the end of the period.

Enterprise Value Trajectory: Enterprise value decreased from US$ 42,232 million in 2014 to US$ 32,211 million in 2015. A substantial increase occurred in 2016, where EV reached a five-year peak of US$ 55,991 million. This was followed by a two-year downward trend, with values receding to US$ 49,490 million in 2017 and further dropping to US$ 35,869 million by December 31, 2018.
Market Value of Common Equity: Common equity market value mirrored the fluctuations observed in the enterprise value. After declining to US$ 26,909 million in 2015, it surged to US$ 47,577 million in 2016. However, a consistent decline followed, resulting in a market value of US$ 27,398 million in 2018, which is slightly lower than the 2015 trough.
Capitalization and Debt Analysis: Total equity and debt levels remained consistently higher than the enterprise value throughout the period. The highest combined value of equity and debt was recorded in 2016 at US$ 60,000 million. By 2018, this figure contracted to US$ 37,877 million, suggesting a reduction in the total capital base alongside the decline in market valuation.
Relationship Between Book and Market Value: A near-perfect correlation is observed between total equity and common equity market value across all five years. This indicates that the market valuation of the company's equity remained closely aligned with its book value of equity throughout the period of volatility.

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Halliburton Co. (NYSE:HAL)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)