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Ascena Retail Group Inc (NAS:ASNA)
Enterprise Value
$2,601 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, Ascena Retail Group Inc's enterprise value is $2,601 Mil. Ascena Retail Group Inc's operating income for the trailing twelve months (TTM) ended in Apr. 2014 was $247 Mil. Therefore, Ascena Retail Group Inc's EV/EBIT ratio for today is 10.55.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Ascena Retail Group Inc's enterprise value is $2,601 Mil. Ascena Retail Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2014 was $440 Mil. Therefore, Ascena Retail Group Inc's EV/EBITDA ratio for today is 5.92.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Ascena Retail Group Inc's enterprise value is $2,601 Mil. Ascena Retail Group Inc's revenue for the trailing twelve months (TTM) ended in Apr. 2014 was $4,806 Mil. Therefore, Ascena Retail Group Inc's EV/Revenue ratio for today is 0.54.


Definition

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

Ascena Retail Group Inc's Enterprise Value for the fiscal year that ended in Jul. 2013 is calculated as

Enterprise Value (A: Jul. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=3044.855+0+135
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0.6+0-189.4
=2,991

Ascena Retail Group Inc's Enterprise Value for the quarter that ended in Apr. 2014 is calculated as

Enterprise Value (Q: Apr. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=2779.52+0+224.4
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0.6+0-216.8
=2,788

* 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.

Ascena Retail Group Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=2601.400/246.6
=10.55

Ascena Retail Group Inc's current Enterprise Value is $2,601 Mil.
Ascena Retail Group Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2014 was 58.3 (Jul. 2013 ) + 85.6 (Oct. 2013 ) + 49 (Jan. 2014 ) + 53.7 (Apr. 2014 ) = $247 Mil.

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

Ascena Retail Group Inc's EV/EBITDA for today is:

Ascena Retail Group Inc's current Enterprise Value is $2,601 Mil.
Ascena Retail Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 111.6 (Jul. 2013 ) + 132.2 (Oct. 2013 ) + 94.3 (Jan. 2014 ) + 101.6 (Apr. 2014 ) = $440 Mil.

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

Ascena Retail Group Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=2601.400/4805.9
=0.54

Ascena Retail Group Inc's current Enterprise Value is $2,601 Mil.
Ascena Retail Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 1197.7 (Jul. 2013 ) + 1196.6 (Oct. 2013 ) + 1266.5 (Jan. 2014 ) + 1145.1 (Apr. 2014 ) = $4,806 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.

Ascena Retail Group Inc Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
ev 3918441,3221,0618977131,8162,3733,2402,991

Ascena Retail Group Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ev 2,4522,7133,0003,5122,8753,1332,9913,1602,9842,788
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