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, LPL Financial Holdings's Enterprise Value is $23,324 Mil.
LPL Financial Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $1,632 Mil. Therefore, LPL Financial Holdings's EV-to-EBIT ratio for today is 14.30.
LPL Financial Holdings Enterprise Value Historical Data
The historical data trend for LPL Financial Holdings's Enterprise Value can be seen below:
* 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 LPL Financial Holdings's Enterprise Value
For the Capital Markets subindustry, LPL Financial Holdings'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.
LPL Financial Holdings's Enterprise Value Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Enterprise Value distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings's Enterprise Value falls into.
LPL Financial Holdings 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.
LPL Financial Holdings's Enterprise Value for the fiscal year that ended in Dec. 2023 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.
LPL Financial Holdings (NAS:LPLA) 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.
LPL Financial Holdings's current Enterprise Value is $23,324 Mil.
LPL Financial Holdings's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,632 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
LPL Financial Holdings's EV-to-EBITDA for today is:
LPL Financial Holdings's current Enterprise Value is $23,324 Mil.
LPL Financial Holdings's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,986 Mil.
LPL Financial Holdings's current Enterprise Value is $23,324 Mil.
LPL Financial Holdings's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $10,053 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.
LPL Financial Holdings Enterprise Value Related Terms
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LPL Financial Holdings (LPL Financial Holdings) Business Description
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of 2022, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.
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