The Motley Fool

JULY 29, 2024

When it recently bought Seagen, a cancer biotech with advanced therapeutic technology, it was willing to take on $31 billion of debt to make the purchase. billion in debt, giving it a debt-to-equity ratio of 0.7. Cancer will remain one of Pfizer's new major focuses, per management. First, the company has plenty of money.

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The Motley Fool

AUGUST 24, 2024

billion in growth capex a year would allow it to pay its distribution while having money left over from its cash flow to pay down debt and/or buy back stock. This metric takes into consideration a company's net debt while taking out non-cash items and is the most widely used way to value midstream companies. billion in debt, $3.9

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Enterprise Values Debt Earnings Before Interest Amortization 243

The Motley Fool

NOVEMBER 24, 2023

As for the cost of acquiring Sierra Wireless, Semtech paid an enterprise value of $1.2 At the end of July, Semtech reported cash and short-term investments of $148 million, and total debt of $1.86 In October, management noted it sold another $250 million of convertible debt to help fund operations. Data by YCharts.

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The Motley Fool

OCTOBER 15, 2024

MicroStrategy's Bitcoin holdings now account for 30% of its enterprise value of $46.9 That rally would boost the value of its current Bitcoin holdings to $2.94 That's 35% of its enterprise value of $4.83 It ended its latest quarter with a seemingly low debt-to-equity ratio of 0.1,

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Enterprise Values Debt Liabilities Capital 246

The Motley Fool

JULY 21, 2024

Driven Brands has an enterprise value of $5 billion (for the record, this is technically a mid-cap stock, not a small-cap stock). That means the company is valued at just 9 times its profits. I mentioned enterprise value and EBITDA because these are metrics commonly used for companies with high levels of debt.

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Enterprise Values Exchange-Traded Funds Debt Investing 246

The Motley Fool

MAY 15, 2024

However, Chevron is by far the largest, with a nearly $320 billion enterprise value compared to Occidental's at over $80 billion. billion of debt. billion of debt and about $1.2 That exceeded the company's long-term target to get debt below $15 billion. billion of CrownRock's existing debt. billion of cash.

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Debt Enterprise Values Leveraging Portfolios 246

The Motley Fool

SEPTEMBER 11, 2023

Ongoing challenges for Carnival Unfortunately for Carnival, the legacy of the pandemic continues to haunt the cruise line -- namely, in the form of its $35 billion total debt, most of which it accumulated to survive an extended shutdown during the pandemic. The debt hurts Carnival in numerous ways, and not just with its ongoing net losses.

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The Motley Fool

JUNE 23, 2023

There's been a lot of dilution since the pandemic forced the industry into taking out more debt and issuing more stock to stay afloat. Its debt load has more than tripled. The end result is that Carnival's current enterprise value of $50.7 Now let's turn our attention to the possible reasons to be a seller.

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Enterprise Values Debt Financing Finance 246

The Motley Fool

AUGUST 5, 2024

Granted, the company slashed its distribution in 2020 because it needed to pay down debt. However, Energy Transfer's debt load isn't as problematic now. Earlier this year, Fitch and S&P (upgraded the company's senior unsecured debt rating. Its enterprise value -to- EBITDA multipole ranks among the lowest in the industry.

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The Motley Fool

APRIL 10, 2024

At 27 times free cash flow (and Disney is even more expensive when debt is considered -- its enterprise value-to-free cash flow ratio is closer to 32x -- investors are crediting Disney stock with much more than the 17% long-term annual growth rate it's projected to achieve.

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The Motley Fool

JANUARY 22, 2024

But investors should know the company does have a lot of debt on its balance sheet. This brings its enterprise value up to around $37 billion compared to its market cap of $24 billion. I think a better earnings ratio for Delta is enterprise value-to-free cash flow (EV/FCF) instead of the traditional P/E.

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The Motley Fool

SEPTEMBER 19, 2024

It's trading for 26 times trailing earnings, and given its debt-bloated balance sheet, that multiple jumps to nearly 60 if you swap out market cap for enterprise value as the numerator. Carnival and its peers had to load up on debt at high rates or sell new shares at low prices to stay afloat. cruise was able to set sail.

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The Motley Fool

MARCH 28, 2024

billion in net debt since its spending spree began. The company's debt and share dilution will likely continue, as Microstrategy recently announced two convertible notes at $800 million and $600 million to fund its latest Bitcoin spending spree. Second, the company's number of outstanding shares has surged from 9.7

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The Motley Fool

MAY 28, 2024

billion in net debt, not including operating leases, an ill-advised investment was not a good use of cash. At a forward price-to-earnings (P/E) ratio of about 5 and enterprise value (EV)- to-EBITDA ratio of 5, Walgreens stock is inexpensive. The latter metric takes into account its net debt and takes out non-cash items.

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Enterprise Values Debt Earnings Before Interest Amortization 246

The Motley Fool

NOVEMBER 10, 2023

Earlier this year, Medical Properties even cut its dividend almost in half in September in order to help it pay off debt and increase flexibility. However, Medical Properties also has a massive amount of debt, as most real estate companies do, making the valuation on an enterprise value basis much higher.

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The Motley Fool

JUNE 17, 2024

times on an enterprise value (EV) -to-forward EBITDA basis, the stock is attractively valued both compared to its midstream peers and on a historical basis. I prefer to use this metric when valuing midstream companies, as it takes their debt into consideration, and excludes non-cash items such as depreciation.

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The Motley Fool

FEBRUARY 12, 2024

The company now holds a significant amount of debt. Management plans to divest non-core assets to accelerate the paydown of that debt. Shares currently trade for an enterprise value/earnings before interest, taxes, depreciation, and amortization (EV/ EBITDA ) multiple of just 5x. By comparison, Chevron trades for a 6.6x

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Enterprise Values Conglomerates Earnings Before Interest Debt 240

The Motley Fool

DECEMBER 29, 2023

That marked the first time its total cash and BTC holdings exceeded its total debt. Marathon's revenues are soaring, but it isn't consistently profitable on a generally accepted accounting principles ( GAAP ) basis, and it's taking on a lot of debt to expand its mining operations. With an enterprise value of $6.1

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Enterprise Values Debt Leveraging Returns 245

The Motley Fool

JANUARY 27, 2024

But management has been able to keep its debt under control while not being afraid to use debt to expand the business. For example, its recent acquisition of oil and gas producer CrownRock will result in a lot of debt going onto the balance sheet. With shares trading at an enterprise-value-to-EBITDA multiple of 5.5,

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Debt Enterprise Values Portfolios Returns 246

The Motley Fool

OCTOBER 6, 2024

billion in long-term debt and a staggering debt-to-equity ratio of 70. With an enterprise value of $23.4 billion (which includes all of its long-term debt), it trades at just 1.8 Those lackluster expectations indicate Lumen's business won't experience a rapid recovery over the next year. billion in 2024.

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Mergers and Acquisitions Debt Enterprise Values Earnings Before Interest 246

The Motley Fool

DECEMBER 3, 2023

Even more disappointingly, the business has been at the forefront of management's corporate actions in recent years, with management buying M*Modal's health information services business for an enterprise value of $1 billion in 2018. billion in net debt. It then bought wound care business Acelity for a consideration of $6.7

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Debt Enterprise Values Stakes Earnings Before Interest 246

The Motley Fool

NOVEMBER 20, 2024

Microstrategy (NASDAQ: MSTR) continues its incredible run as the company sells more debt and equity to buy more Bitcoin (CRYPTO: BTC). As Microstrategy becomes a pure Bitcoin play, if the enterprise value of the company exceeds the value of the Bitcoin on the balance sheet, it will issue shares to buy Bitcoin.

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Enterprise Values Leveraging Debt Returns 188

The Motley Fool

MAY 11, 2024

Enterprise ended the quarter with leverage of 3x. It defines leverage as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA. What this means for investors in simpler terms is that Enterprise's distribution payout is well covered by its cash flow.

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Depreciation Enterprise Values Leveraging Debt 241

The Motley Fool

JUNE 19, 2023

Also noteworthy: According to data from S&P Global Market Intelligence , if you net out Planet Labs' cash and debt, the company's enterprise value drops to just $591 million -- less than 3x trailing-12-month sales. Granted, that's not as cheap as some space stocks are selling for.

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Enterprise Values Initial Public Offering Debt Capital 245

The Motley Fool

NOVEMBER 19, 2024

billion and a market value of $24.5 MicroStrategy's Bitcoin portfolio is equal to about a third of the company's enterprise value of $73.3 It's also taking on a lot more debt and issuing more shares to fund those purchases. dollar, the value of its Bitcoin holdings should easily cover its dollar-based debt.

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The Motley Fool

SEPTEMBER 8, 2023

At its peak, Nikola had an enterprise value of $28.7 Instead, it was being valued based entirely on the ambitious production targets it set during its pre-merger presentation in March 2020. Nikola ended the second quarter of 2023 with $615 million in total liabilities, which gave it a debt-to-equity ratio of 1.2.

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Mergers and Acquisitions Enterprise Values Liabilities Debt 246

The Motley Fool

JULY 1, 2024

Carnival's enterprise value already sits within shouting distance of pre-pandemic highs. Enterprise value is important because there is more to a company than how much people are willing to pay for its stock -- like debt, for example. Carnival had modest debt before the pandemic and earned $4.42

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Enterprise Values Debt Returns Stock Market 130

The Motley Fool

JULY 17, 2023

Ultimately, Zoom's steadily growing sales to enterprise customers should whittle away at its high SBC levels over time. With an enterprise-value-to-FCF ratio of just 14, Zoom's cheap valuation and nascent growth options look perfect for patient, buy-and-hold investors. billion, Nasdaq is facing investor skepticism.

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Enterprise Values Debt Taxes Accounting 244

The Motley Fool

APRIL 4, 2024

This is important for investors because it allows the company to pay out its distribution while still being able to pay down debt. When Energy Transfer cut its distribution in 2020, it was because its leverage became too high, and it needed to pay down debt. cents is now higher than the 30.5 cents it was before the distribution cut.

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Enterprise Values Depreciation Leveraging Debt 189

The Motley Fool

AUGUST 10, 2023

One, Infinera does have a notable debt load of $683 million against $165 million in cash. So on an enterprise value basis , it's not quite as cheap. Now what Earnings of $1 would make the stock incredibly cheap today for sure, but there are some caveats.

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Enterprise Values Debt Capital Investments Capital 246

The Motley Fool

JUNE 25, 2024

It's true that Carnival's multiple is substantially higher if we base it on enterprise value instead of the garden variety market cap. Carnival and its rivals had to raise a lot of debt when they weren't issuing new shares to literally and figuratively stay afloat in the wake of the pandemic. It has repurchased $6.6

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Enterprise Values Debt Prospects Returns 246

The Motley Fool

MARCH 17, 2024

But based on those expectations and its enterprise value of $2.2 Its high debt-to-equity ratio of 4.3 Supermicro ended its latest quarter with a low debt-to-equity ratio of 0.8. Its stock still looks reasonably valued relative to those expectations at 37 times forward earnings and 3 times next year's sales.

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Enterprise Values Buyout Earnings Before Interest Amortization 239

The Motley Fool

AUGUST 7, 2024

billion in long-term debt with $1.6 With an enterprise value of $21 billion, Lumen might seem cheap at 1.6 billion in long-term debt from its streak of big acquisitions across the chip and software sectors. Through that deal, Lumen will upgrade Azure's cloud and AI infrastructure with new networking and fiber equipment.

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Mergers and Acquisitions Enterprise Values Debt Returns 246

The Motley Fool

MAY 16, 2024

Many of these companies rely on debt instruments for financing, which becomes more expensive when rates rise. Consequently, some small-cap stocks are currently trading at negative enterprise values -- a rare occurrence. The small-cap growth dilemma Small-cap growth stocks have faced challenges due to high interest rates.

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Exchange-Traded Funds Enterprise Values Finance Financing 246

The Motley Fool

JULY 1, 2024

Meanwhile, its balance sheet is in good shape with a leverage ratio (net debt/adjusted EBITDA ) of just 3.2 < Situated in the right basins, MPLX looks in good shape to continue growing its distributions, while its forward enterprise value (EV) -to-EBITDA (earnings before interest, taxes, depreciation, and amortization) valuation of 9.6

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Exchange-Traded Funds Leveraging Enterprise Values Earnings Before Interest 245

The Motley Fool

OCTOBER 14, 2024

But with its stock trading at about $2, Plug Power's enterprise value of $2.6 billion values the company at just two times next year's estimated sales. That lifeline will prevent Plug from going bankrupt, but tapping the entire loan would also roughly double its current debt-to-equity ratio to 1.2.

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The Motley Fool

JULY 31, 2023

Pare debt and maintain a strong balance sheet. Right now, Chevron is trading significantly below its five-year averages on two key valuation counts -- price-to-cash flow and enterprise value-to- EBITDA. billion, including debt. Reinvest in the business. Buy back shares.

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Enterprise Values Debt Capital Shareholders 237