Switch to:
Acuity Brands Inc (NYSE:AYI)
Enterprise Value
$0 Mil (As of Feb. 2014)

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, Acuity Brands Inc's enterprise value is $5,389 Mil. Acuity Brands Inc's operating income for the trailing twelve months (TTM) ended in Feb. 2014 was $264 Mil. Therefore, Acuity Brands Inc's EV/EBIT ratio for today is 20.41.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Acuity Brands Inc's enterprise value is $5,389 Mil. Acuity Brands Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $309 Mil. Therefore, Acuity Brands Inc's EV/EBITDA ratio for today is 17.44.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Acuity Brands Inc's enterprise value is $5,389 Mil. Acuity Brands Inc's revenue for the trailing twelve months (TTM) ended in Feb. 2014 was $2,242 Mil. Therefore, Acuity Brands Inc's EV/Revenue ratio for today is 2.40.


Definition

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

Acuity Brands Inc's Enterprise Value for the fiscal year that ended in Aug. 2013 is calculated as

Enterprise Value (A: Aug. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=3632.895+0+353.6
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-359.1
=3,627

Acuity Brands Inc's Enterprise Value for the quarter that ended in Feb. 2014 is calculated as

Enterprise Value (Q: Feb. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=0+0+353.6
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-408.2
=-55

* 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.

Acuity Brands Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=5389.245/264
=20.41

Acuity Brands Inc's current Enterprise Value is $5,389 Mil.
Acuity Brands Inc's Operating Income for the trailing twelve months (TTM) ended in Feb. 2014 was 50 (May. 2013 ) + 78.2 (Aug. 2013 ) + 77.4 (Nov. 2013 ) + 58.4 (Feb. 2014 ) = $264 Mil.

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

Acuity Brands Inc's EV/EBITDA for today is:

Acuity Brands Inc's current Enterprise Value is $5,389 Mil.
Acuity Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 63.5 (May. 2013 ) + 88.9 (Aug. 2013 ) + 87.5 (Nov. 2013 ) + 69.2 (Feb. 2014 ) = $309 Mil.

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

Acuity Brands Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=5389.245/2242.2
=2.40

Acuity Brands Inc's current Enterprise Value is $5,389 Mil.
Acuity Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 541.5 (May. 2013 ) + 579.8 (Aug. 2013 ) + 574.7 (Nov. 2013 ) + 546.2 (Feb. 2014 ) = $2,242 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.

Acuity Brands Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev 1,1981,3671,8421,9991,8361,5751,7942,0932,7503,627

Acuity Brands Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev 2,2652,7672,4002,7502,9032,9713,2293,6274,3300
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide