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Best Buy Co Inc (NYSE:BBY)
Enterprise Value
$8,955 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, Best Buy Co Inc's enterprise value is $8,955 Mil. Best Buy Co Inc's operating income for the trailing twelve months (TTM) ended in Apr. 2014 was $1,169 Mil. Therefore, Best Buy Co Inc's EV/EBIT ratio for today is 7.66.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Best Buy Co Inc's enterprise value is $8,955 Mil. Best Buy Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2014 was $1,884 Mil. Therefore, Best Buy Co Inc's EV/EBITDA ratio for today is 4.75.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Best Buy Co Inc's enterprise value is $8,955 Mil. Best Buy Co Inc's revenue for the trailing twelve months (TTM) ended in Apr. 2014 was $42,065 Mil. Therefore, Best Buy Co Inc's EV/Revenue ratio for today is 0.21.


Definition

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

Best Buy Co Inc'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
=8182.504+0+1612
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+45+3-2901
=6,942

Best Buy Co 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
=8998.7472+0+1604
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+44+3-3066
=7,584

* 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.

Best Buy Co Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=8954.839/1169
=7.66

Best Buy Co Inc's current Enterprise Value is $8,955 Mil.
Best Buy Co Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2014 was 413 (Jul. 2013 ) + 91 (Oct. 2013 ) + 468 (Jan. 2014 ) + 197 (Apr. 2014 ) = $1,169 Mil.

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

Best Buy Co Inc's EV/EBITDA for today is:

Best Buy Co Inc's current Enterprise Value is $8,955 Mil.
Best Buy Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 609 (Jul. 2013 ) + 266 (Oct. 2013 ) + 645 (Jan. 2014 ) + 364 (Apr. 2014 ) = $1,884 Mil.

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

Best Buy Co Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=8954.839/42065
=0.21

Best Buy Co Inc's current Enterprise Value is $8,955 Mil.
Best Buy Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 9300 (Jul. 2013 ) + 9362 (Oct. 2013 ) + 14368 (Jan. 2014 ) + 9035 (Apr. 2014 ) = $42,065 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.

Best Buy Co Inc Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14
ev 16,14215,06823,98619,95518,83314,15515,81713,93110,6786,942

Best Buy Co Inc Quarterly Data

Nov11Feb12Apr12Jul12Oct12Apr13Jul13Oct13Jan14Apr14
ev 11,26010,0638,8288,2917,46610,21510,03114,1186,9217,584
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