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Acuity Brands Inc (NYSE:AYI)
Enterprise Value
$7,549 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, Acuity Brands Inc's enterprise value is $7,549 Mil. Acuity Brands Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2015 was $366 Mil. Therefore, Acuity Brands Inc's EV/EBIT ratio for today is 20.64.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Acuity Brands Inc's enterprise value is $7,549 Mil. Acuity Brands Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2015 was $411 Mil. Therefore, Acuity Brands Inc's EV/EBITDA ratio for today is 18.36.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Acuity Brands Inc's enterprise value is $7,549 Mil. Acuity Brands Inc's revenue for the trailing twelve months (TTM) ended in May. 2015 was $2,616 Mil. Therefore, Acuity Brands Inc's EV/Revenue ratio for today is 2.89.


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. 2014 is calculated as

Enterprise Value (A: Aug. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=5309.4968+0+353.6
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-552.5
=5,111

Acuity Brands Inc's Enterprise Value for the quarter that ended in May. 2015 is calculated as

Enterprise Value (Q: May. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=7624.368+0+353.7
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-652.1
=7,326

* 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

Acuity Brands Inc's current Enterprise Value is $7,549 Mil.
Acuity Brands Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2015 was 90.2 (Aug. 2014 ) + 87.8 (Nov. 2014 ) + 78.7 (Feb. 2015 ) + 109 (May. 2015 ) = $366 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 $7,549 Mil.
Acuity Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2015 was 101.4 (Aug. 2014 ) + 99.1 (Nov. 2014 ) + 89.9 (Feb. 2015 ) + 120.7 (May. 2015 ) = $411 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)
=7548.540/2615.9
=2.89

Acuity Brands Inc's current Enterprise Value is $7,549 Mil.
Acuity Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2015 was 668.7 (Aug. 2014 ) + 647.4 (Nov. 2014 ) + 616.1 (Feb. 2015 ) + 683.7 (May. 2015 ) = $2,616 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
ev 1,3671,8421,9991,8361,5751,7942,0932,7503,6275,111

Acuity Brands Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
ev 2,9713,2293,6274,3685,9875,2645,1115,7486,5967,326
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