Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Reliance Communications's Enterprise Value is ₹471,663 Mil.
Reliance Communications's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 was ₹-390 Mil. Therefore, Reliance Communications's EV-to-EBIT ratio for today is -1,209.39.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Reliance Communications's Enterprise Value
For the Telecom Services subindustry, Reliance Communications's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reliance Communications's Enterprise Value Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Reliance Communications's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Reliance Communications's Enterprise Value falls into.
Reliance Communications Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Reliance Communications's Enterprise Value for the fiscal year that ended in Mar. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Reliance Communications (BOM:532712) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Reliance Communications's current Enterprise Value is ₹471,663 Mil.
Reliance Communications's EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹-390 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Reliance Communications's EV-to-EBITDA for today is:
Reliance Communications's current Enterprise Value is ₹471,663 Mil.
Reliance Communications's EBITDA for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹880 Mil.
Reliance Communications's current Enterprise Value is ₹471,663 Mil.
Reliance Communications's Revenue for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹3,840 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Reliance Communications Enterprise Value Related Terms
Thank you for viewing the detailed overview of Reliance Communications's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Reliance Communications (BOM:532712) Business Description
Reliance Communications Ltd is a triple-play telecommunications company that provides mobile, voice, and broadband services in two segments: India Operations and global Operations. The India Operations segment accounts for the majority of overall company revenue and includes wireless, mobile, and satellite TV services to Indian retail customers as well as voice, broadband access services to enterprises. The global Operations segment offers international data and network services, enterprise services, and data services to global customers. These services are offered over the group's owned submarine cable infrastructure and Indian fiber network. Additionally, Reliance Communications owns mobile phone tower infrastructure.
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