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Abercrombie & Fitch Co (NYSE:ANF)
Enterprise Value
$1,974 Mil (As of Today)

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 and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Abercrombie & Fitch Co's enterprise value is $1,974 Mil. Abercrombie & Fitch Co's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $132 Mil. Therefore, Abercrombie & Fitch Co's EV/EBIT ratio for today is 14.92.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Abercrombie & Fitch Co's enterprise value is $1,974 Mil. Abercrombie & Fitch Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $362 Mil. Therefore, Abercrombie & Fitch Co's EV/EBITDA ratio for today is 5.46.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Abercrombie & Fitch Co's enterprise value is $1,974 Mil. Abercrombie & Fitch Co's revenue for the trailing twelve months (TTM) ended in Oct. 2014 was $3,924 Mil. Therefore, Abercrombie & Fitch Co's EV/Revenue ratio for today is 0.50.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Abercrombie & Fitch Co's Enterprise Value for the fiscal year that ended in Jan. 2014 is calculated as

Enterprise Value (A: Jan. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=2783.20308+0+180.726
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+15+0-600.116
=2,379

Abercrombie & Fitch Co's Enterprise Value for the quarter that ended in Oct. 2014 is calculated as

Enterprise Value (Q: Oct. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=2395.1772+0+347.303
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+2.102+0-320.564
=2,424

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


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/EBIT ratio is calculated as enterprise value divided by its EBIT.

Abercrombie & Fitch Co's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=1974.441/132.303
=14.92

Abercrombie & Fitch Co's current Enterprise Value is $1,974 Mil.
Abercrombie & Fitch Co's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 110.95 (Jan. 2014 ) + -31.506 (Apr. 2014 ) + 19.493 (Jul. 2014 ) + 33.366 (Oct. 2014 ) = $132 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Abercrombie & Fitch Co's EV/EBITDA for today is:

Abercrombie & Fitch Co's current Enterprise Value is $1,974 Mil.
Abercrombie & Fitch Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 165.581 (Jan. 2014 ) + 27.391 (Apr. 2014 ) + 79.358 (Jul. 2014 ) + 89.57 (Oct. 2014 ) = $362 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Abercrombie & Fitch Co's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1974.441/3923.623
=0.50

Abercrombie & Fitch Co's current Enterprise Value is $1,974 Mil.
Abercrombie & Fitch Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 1299.137 (Jan. 2014 ) + 822.428 (Apr. 2014 ) + 890.605 (Jul. 2014 ) + 911.453 (Oct. 2014 ) = $3,924 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt, Cash and Cash Equivalents


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Abercrombie & Fitch Co Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev 4,4285,5946,7896,6361,1722,1343,6403,3243,5792,379

Abercrombie & Fitch Co Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev 2,5212,1283,3433,5253,6782,8062,2992,5342,7302,424
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