National Oilwell Varco Inc., current enterprise value calculation

Current share price (P)	$32.66
No. shares of common stock outstanding	377,631,319
US$ in millions
Common equity (market value)¹	12,333)
Add: Noncontrolling interests (per books)	77)
Total equity	12,410)
Add: Current portion of long-term debt and short-term borrowings (per books)	2)
Add: Long-term debt, excluding current portion (per books)	3,928)
Total equity and debt	16,340)
Less: Cash and cash equivalents	2,080)
Enterprise value (EV)	14,260)

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 32.66 × 377,631,319

National Oilwell Varco Inc., EV calculation

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Share price^1, 2	$29.30	$55.13	$76.42	$68.10	$86.23
No. shares of common stock outstanding¹	375,800,956	409,935,076	428,526,178	426,639,780	424,224,491
US$ in millions
Common equity (market value)³	11,011)	22,600)	32,748)	29,054)	36,581)
Add: Noncontrolling interests (book value)	77)	80)	100)	117)	109)
Total equity	11,088)	22,680)	32,848)	29,171)	36,690)
Add: Current portion of long-term debt and short-term borrowings (book value)	2)	152)	1)	1)	351)
Add: Long-term debt, excluding current portion (book value)	3,928)	3,014)	3,149)	3,148)	159)
Total equity and debt	15,018)	25,846)	35,998)	32,320)	37,200)
Less: Cash and cash equivalents	2,080)	3,536)	3,436)	3,319)	3,535)
Enterprise value (EV)	12,938)	22,310)	32,562)	29,001)	33,665)

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of National Oilwell Varco Inc. Annual Report.

³ 2015 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 29.30 × 375,800,956

Equity Trends: The common equity (market value) showed a declining pattern from 2011 to 2015. It decreased from $36,581 million at the end of 2011 to $11,011 million by the end of 2015. This represents a significant shrinkage over the five-year period. Total equity followed a similar trend, falling from $36,690 million in 2011 to $11,088 million in 2015, indicating a strong correlation between market equity and reported equity levels.
Capital Structure Developments: Total equity and debt also decreased substantially, from $37,200 million in 2011 to $15,018 million in 2015. This suggests a reduction in the company’s overall capital base, encompassing both debt and equity financing.
Enterprise Value Fluctuations: The enterprise value (EV) mirrored the overall downward trend, declining from $33,665 million at the end of 2011 to $12,938 million by the end of 2015. The fall in EV reflects both the reduction in market capitalization and possibly lower debt levels or changes in cash and cash equivalents.
Overall Financial Insight: The data indicates a pronounced contraction in financial size and valuation over the five-year period. The declines across equity, total capital, and enterprise value point toward challenges in maintaining value, which may be attributable to weaker financial performance, market conditions, or strategic shifts reducing asset base or increasing liabilities in preceding or subsequent periods.

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National Oilwell Varco Inc. (NYSE:NOV)

Enterprise Value (EV)