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Cal-Maine Foods Inc (NAS:CALM)
Enterprise Value
$1,750 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, Cal-Maine Foods Inc's enterprise value is $1,750 Mil. Cal-Maine Foods Inc's operating income for the trailing twelve months (TTM) ended in May. 2014 was $146 Mil. Therefore, Cal-Maine Foods Inc's EV/EBIT ratio for today is 11.98.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Cal-Maine Foods Inc's enterprise value is $1,750 Mil. Cal-Maine Foods Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $199 Mil. Therefore, Cal-Maine Foods Inc's EV/EBITDA ratio for today is 8.82.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Cal-Maine Foods Inc's enterprise value is $1,750 Mil. Cal-Maine Foods Inc's revenue for the trailing twelve months (TTM) ended in May. 2014 was $1,441 Mil. Therefore, Cal-Maine Foods Inc's EV/Revenue ratio for today is 1.21.


Definition

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

Cal-Maine Foods Inc's Enterprise Value for the fiscal year that ended in May. 2014 is calculated as

Enterprise Value (A: May. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=1686.7968+0+50.877
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+10.216+0.912-209.259
=1,540

Cal-Maine Foods Inc's Enterprise Value for the quarter that ended in May. 2014 is calculated as

Enterprise Value (Q: May. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=1686.7968+0+50.877
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+10.216+0.912-209.259
=1,540

* 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.

Cal-Maine Foods Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=1750.321/146.052
=11.98

Cal-Maine Foods Inc's current Enterprise Value is $1,750 Mil.
Cal-Maine Foods Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 11.07 (Aug. 2013 ) + 40.858 (Nov. 2013 ) + 46.596 (Feb. 2014 ) + 47.528 (May. 2014 ) = $146 Mil.

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

Cal-Maine Foods Inc's EV/EBITDA for today is:

Cal-Maine Foods Inc's current Enterprise Value is $1,750 Mil.
Cal-Maine Foods Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 19.963 (Aug. 2013 ) + 49.977 (Nov. 2013 ) + 68.468 (Feb. 2014 ) + 60.137 (May. 2014 ) = $199 Mil.

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

Cal-Maine Foods Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=1750.321/1440.907
=1.21

Cal-Maine Foods Inc's current Enterprise Value is $1,750 Mil.
Cal-Maine Foods Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 319.528 (Aug. 2013 ) + 354.275 (Nov. 2013 ) + 395.522 (Feb. 2014 ) + 371.582 (May. 2014 ) = $1,441 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.

Cal-Maine Foods Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
ev 1812313757446377066236649611,540

Cal-Maine Foods Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev 7736668261,0138579619981,2231,1451,540
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