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Arcos Dorados Holdings Inc (NYSE:ARCO)
Enterprise Value
$0 Mil (As of Dec. 2013)

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, Arcos Dorados Holdings Inc's enterprise value is $2,644 Mil. Arcos Dorados Holdings Inc's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $229 Mil. Therefore, Arcos Dorados Holdings Inc's EV/EBIT ratio for today is 11.57.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Arcos Dorados Holdings Inc's enterprise value is $2,644 Mil. Arcos Dorados Holdings Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $343 Mil. Therefore, Arcos Dorados Holdings Inc's EV/EBITDA ratio for today is 7.70.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Arcos Dorados Holdings Inc's enterprise value is $2,644 Mil. Arcos Dorados Holdings Inc's revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $4,033 Mil. Therefore, Arcos Dorados Holdings Inc's EV/Revenue ratio for today is 0.66.


Definition

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

Arcos Dorados Holdings Inc's Enterprise Value for the fiscal year that ended in Dec. 2013 is calculated as

Enterprise Value (A: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=0+0+771.171
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+12.276+0.762-175.648
=609

Arcos Dorados Holdings Inc's Enterprise Value for the quarter that ended in Dec. 2013 is calculated as

Enterprise Value (Q: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=0+0+771.171
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+14.324+0.762-175.648
=611

* 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.

Arcos Dorados Holdings Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=2644.069/228.522
=11.57

Arcos Dorados Holdings Inc's current Enterprise Value is $2,644 Mil.
Arcos Dorados Holdings Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 37.217 (Mar. 2013 ) + 38.349 (Jun. 2013 ) + 62.273 (Sep. 2013 ) + 90.683 (Dec. 2013 ) = $229 Mil.

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

Arcos Dorados Holdings Inc's EV/EBITDA for today is:

Arcos Dorados Holdings Inc's current Enterprise Value is $2,644 Mil.
Arcos Dorados Holdings Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 42.615 (Mar. 2013 ) + 35.261 (Jun. 2013 ) + 146.442 (Sep. 2013 ) + 119.064 (Dec. 2013 ) = $343 Mil.

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

Arcos Dorados Holdings Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=2644.069/4033.31
=0.66

Arcos Dorados Holdings Inc's current Enterprise Value is $2,644 Mil.
Arcos Dorados Holdings Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 976.91 (Mar. 2013 ) + 989.185 (Jun. 2013 ) + 1021.212 (Sep. 2013 ) + 1046.003 (Dec. 2013 ) = $4,033 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.

Arcos Dorados Holdings Inc Annual Data

Dec09Dec10Dec11Dec12Dec13
ev 00000004,6562,9740

Arcos Dorados Holdings Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev 5,1544,6564,1873,5123,6432,9743,3003,0033,0500
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