Enterprise Value (EV)
Current Enterprise Value (EV)
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) |
Based on: 10-K (reporting date: 2015-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 32.66 × 377,631,319
Historical Enterprise Value (EV)
National Oilwell Varco Inc., EV calculation
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
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
The financial trajectory from 2011 to 2015 is characterized by a substantial contraction in valuation and capital structure. Enterprise value exhibits a pronounced downward trend, decreasing from US$ 33,665 million in 2011 to US$ 12,938 million by the end of 2015, representing a total decline of approximately 61.6% over the period.
- Market Value and Equity Trends
- Common equity market value experienced a sharp decline, particularly after 2013. Following a recovery to US$ 32,748 million in 2013, the value plummeted to US$ 11,011 million by 2015. This movement is closely mirrored by total equity, which fell from US$ 36,690 million in 2011 to US$ 11,088 million in 2015, indicating a significant erosion of both the company's book value and market capitalization.
- Enterprise Value Volatility
- The enterprise value remained relatively resilient between 2011 and 2013, fluctuating between US$ 29,001 million and US$ 33,665 million. However, a severe contraction occurred between 2013 and 2015, where the value dropped from US$ 32,562 million to US$ 12,938 million, reflecting a substantial loss in overall corporate value during the final two years of the period.
- Capital Structure and Debt Dynamics
- Total equity and debt followed a similar declining pattern, moving from US$ 37,200 million in 2011 to US$ 15,018 million in 2015. A shift in the capital structure is observable: in the period between 2011 and 2014, the enterprise value remained consistently below the market value of common equity, suggesting a net cash position. By 2015, this relationship inverted, as the enterprise value of US$ 12,938 million exceeded the market value of equity of US$ 11,011 million, indicating a shift toward a net debt position.
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