Historical Enterprise Value: Analyzing Past Performance and Future Prospects

Analyzing historical enterprise value can provide valuable insights into a company's past performance and future prospects.

A company's historical enterprise value can be a strong indicator of its financial health, with lower values often indicating a more stable company.

The historical enterprise value of companies like Coca-Cola and Johnson & Johnson has remained relatively stable over the years, despite fluctuations in the market.

This stability is likely due to the companies' strong brand recognition and loyal customer bases, which have allowed them to maintain their market share and financial stability.

By examining a company's historical enterprise value, investors can gain a better understanding of its financial performance and make more informed investment decisions.

FactSet Research Systems Inc. (FDS) has an Enterprise Value greater than its 3-year, 5-year, and 10-year historical averages.

The current Enterprise Value of FactSet Research Systems Inc. (FDS) is greater than its 3-year historical average.

You can analyze a company like FactSet Research Systems Inc. or any others using a custom spreadsheet model that automatically retrieves all the stock data you need.

FactSet Research Systems Inc. (FDS) Enterprise Value is greater than its 5-year historical average.

Wisesheets is a tool that allows you to set up a spreadsheet model with simple formulas, and easily update the data for a company by changing the ticker.

FactSet Research Systems Inc. (FDS) Enterprise Value is greater than its 10-year historical average.

With Wisesheets, you can get live data, historical price data, financials, dividend data, key metrics, analyst estimates, or anything else you need.

Historical Enterprise Value can be a valuable tool for investors and analysts to assess a company's past performance.

The mean historical Enterprise Value of FactSet Research Systems Inc. over the last ten years is 12.16B.

EverQuote, Inc.'s mean historical Enterprise Value over the last ten years is significantly lower at 483.25M.

Enterprise Value represents the total value of a company, incorporating all components of management's allocation of the capital structure.

The formula for calculating EV is not explicitly stated in the article, but it's mentioned that it represents the takeover value of the company.

To determine the valuation of a target company, multiples of the peer universe are used.

Here's an example of how to calculate valuation using multiples:

In the past, FDS's Enterprise Value was at its highest in the November 2024 quarter at 19.91B, while EVER's Enterprise Value was at its highest in the June 2020 quarter at 1.52B.

The Enterprise Value of FactSet Research Systems Inc. has changed 15.51% with respect to its historical average, while EverQuote, Inc.'s Enterprise Value has changed 14.63% with respect to its historical average.

EverQuote's revenue has grown significantly over the years, reaching $434.6 million in 2020, up from $144.2 million in 2017.

The company's net loss has also decreased, with a net loss of $32.1 million in 2020 compared to a net loss of $64.9 million in 2018.

EverQuote's operating expenses have increased, reaching $432.5 million in 2020, up from $243.1 million in 2017.

EverQuote (EVER) Financials is a key aspect of the company's overall performance. The company has reported a net loss of $69.4 million in 2020, compared to a net loss of $46.4 million in 2019.

EverQuote's revenue has been steadily increasing over the years, reaching $342.9 million in 2020. This growth can be attributed to the company's expanding user base and increased demand for its services.

The company's operating expenses have also been rising, reaching $412.1 million in 2020. This includes costs associated with marketing, sales, and research and development.

EverQuote's net loss margin has been decreasing over the years, from 13.5% in 2019 to 20.3% in 2020. This indicates a slight improvement in the company's financial health.

The company has a significant amount of cash on hand, with $234.8 million in cash and cash equivalents as of 2020. This provides a cushion for the company to weather any financial storms.

EverQuote, Inc. has seen its fair share of ups and downs in terms of enterprise value. In 2020, the company's enterprise value peaked at $988.55M.

The maximum annual increase in enterprise value was 2.78%, which occurred in both 2019 and 2022. This indicates a relatively stable growth rate for the company.

In 2023, EverQuote's enterprise value dropped to $372.41M, a decrease of 15.66% from the previous year. This significant drop suggests a challenging year for the company.

Here's a breakdown of the enterprise value for each year:

Comparing the enterprise value of different companies is a great way to get a sense of their relative worth. FactSet Research Systems Inc.'s Enterprise Value is greater than Dun & Bradstreet Holdings, Inc. ($8.07B) and less than Moody's Corporation ($98.68B).

Let's take a look at some examples. EverQuote, Inc.'s Enterprise Value is greater than Onfolio Holdings, Inc. ($8.47M) and Liberty TripAdvisor Holdings, Inc. ($93.24M), but less than Vivid Seats Inc. ($766.77M).

Here's a comparison of the Enterprise Value of several companies:

By comparing the Enterprise Value of these companies, we can see that they vary widely, ranging from $8.07B to $177.49B.

In contrast, EverQuote, Inc.'s Enterprise Value is greater than Onfolio Holdings, Inc. ($8.47M) and Liberty TripAdvisor Holdings, Inc. ($93.24M), but less than Vivid Seats Inc. ($766.77M).

It's also worth noting that the Enterprise Value of a company can fluctuate over time. For example, EverQuote, Inc.'s Enterprise Value peaked at $988.55M in 2020, but declined to $372.41M in 2023.

By analyzing the Enterprise Value of different companies, we can gain insights into their relative worth and potential for growth.

When analyzing a company's historical enterprise value, understanding valuation methods is crucial.

To begin, a Comps analysis relies on a selection of competitor/similar companies, known as the Peer Universe, to determine a benchmark valuation.

A key assumption in this process is using EBITDA, which stands for Earnings before Interest, Taxes, Depreciation & Amortization, both historically and projected.

The "C.V.S." mnemonic is helpful in remembering these key assumptions: Peer Universe, EBITDA, and EPS, which stands for Earnings Per Share, also both historically and projected.

To quickly reference these assumptions, here's a summary:

To calculate historical enterprise value, you'll need to start with two fundamental metrics: EPS (Earnings Per Share) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). These metrics form the denominators of the multiples used in the analysis.

Historical financial results are essential for this calculation, so make sure to input the actual numbers from previous years. For example, let's use the year 2011 as a starting point.

Projected EPS can be derived in several different ways, but it's crucial to have a solid understanding of how to calculate it accurately. This will help you make informed decisions about your financial analysis.

EBITDA EV multiples can vary significantly across different industries, and understanding these trends is vital for making informed investment decisions. For instance, technology companies often command higher multiples due to their potential for rapid growth and innovation.

Industry-specific factors, such as the potential for growth and innovation, can significantly impact EBITDA EV multiples. This is evident in the automotive industry, where companies like Tesla have commanded higher multiples due to their focus on electric vehicles and autonomous driving technology.

Comparing a company's multiple to its peers or historical averages can help identify potential undervalued or overvalued stocks. This is a valuable tool for making informed investment decisions and avoiding costly mistakes.

By analyzing industry-specific trends in EBITDA EV multiples, you can gain a deeper understanding of how market conditions, industry-specific factors, and macroeconomic trends impact valuation multiples. This knowledge can help you make more informed decisions about your financial analysis.

Comps Valuation is a relative valuation technique used to value a company by comparing its valuation multiples to those of its peers. It's based on the idea that companies with similar characteristics should trade at similar multiples, all other things being equal.

To execute a Comps valuation, you need to follow these steps: Select a Peer Universe, Calculate Market Capitalization, Calculate Enterprise Value, use Historical & Projected Financials, Spread Multiples, and Value Target Company.

The Comps set given is trading at 12.4x (median) 2012E Earnings Per Share, which is used to determine the valuation of the target company.

Comparable Company Analyses (Comps) are a relative valuation technique used to value a company by comparing its valuation multiples to those of its peers.

This method assumes that companies with similar characteristics should trade at similar multiples, all other things being equal.

To execute a Comps valuation, you need to select a Peer Universe, which is a group of competitor or similar companies with comparable industries and fundamental characteristics.

For example, EverQuote, Inc. has selected a peer universe that includes companies such as Onfolio Holdings, Inc., Liberty TripAdvisor Holdings, Inc., and Vivid Seats Inc.

Here's a list of the companies in EverQuote's peer universe:

By comparing EverQuote's Enterprise Value to its peers, we can see that its Enterprise Value is greater than some of its peers, such as Onfolio Holdings, Inc. and Liberty TripAdvisor Holdings, Inc., but less than others, such as Vivid Seats Inc. and PropertyGuru Limited.

The Enterprise Value is calculated by adding Market Capitalization, Debt, Preferred Stock, and Minority Interest (if applicable), and then subtracting Cash. For example, EverQuote's Enterprise Value is greater than Onfolio Holdings, Inc.'s Enterprise Value of $8.47M.

Comparably Company Analyses, or "Comps", are a relative valuation technique used to value a company by comparing that company's valuation multiples to those of its peers. Typically, the multiples are a ratio of some valuation metric to some financial performance metric.

The basic idea is that companies with similar characteristics should trade at similar multiples, all other things being equal. For example, if a company is trading at 12.4x earnings per share, we can use this information to determine the valuation of the target company.

Here's how it works: we multiply the P/E multiple by the target company's earnings per share to get the market value per share. In the case of Company F, 12.4 x $1.50 = $18.60. This is the market value per share, and we're finished!

However, when using enterprise value multiples, we need to back out net debt to get to market capitalization. This is done by subtracting net debt from enterprise value. For example, if a company has an enterprise value of $415.8 million and net debt of $417 million, we would subtract $417 million from $415.8 million to get $5.0 million, and then add this to the enterprise value to get $420.8 million.

Here's a quick rundown of the steps to calculate market capitalization using enterprise value multiples:

For example, if a company has an EBITDA of $77 million and an EBITDA EV multiple of 5.4, we would multiply $77 million by 5.4 to get $415.8 million. We would then subtract net debt to get $420.8 million, and divide this by shares outstanding to get $13.93.

Analyzing industry-specific EBITDA EV multiples is a crucial aspect of understanding the historical trends and dynamics of valuation metrics. By examining these multiples over time, investors and analysts can gain valuable insights into the relative value of companies within specific industries.

Industry-specific factors, such as technology companies commanding higher multiples due to their potential for rapid growth and innovation, play a significant role in determining EBITDA EV multiples. Mature industries with stable cash flows, on the other hand, may have lower multiples.

The overall market environment also influences EBITDA EV multiples, with multiples tending to be higher during periods of economic expansion and bullish sentiment. Conversely, during economic downturns or market corrections, multiples may contract as risk aversion increases.

Macroeconomic trends, such as interest rates, inflation, and GDP growth, also impact EBITDA EV multiples across industries. For example, low-interest-rate environments can lead to higher multiples as discounted cash flow models favor future earnings more heavily.

A comparative analysis of industry-specific trends in EBITDA EV multiples allows for meaningful comparisons between companies within the same sector. By comparing a company's multiple to its peers or historical averages, analysts can identify potential undervalued or overvalued stocks.

Here are some notable companies and their EBITDA EV multiples over time: