Switch to:
Darden Restaurants Inc (NYSE:DRI)
Enterprise Value
$9,019 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, Darden Restaurants Inc's enterprise value is $9,019 Mil. Darden Restaurants Inc's operating income for the trailing twelve months (TTM) ended in Nov. 2014 was $332 Mil. Therefore, Darden Restaurants Inc's EV/EBIT ratio for today is 27.17.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Darden Restaurants Inc's enterprise value is $9,019 Mil. Darden Restaurants Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $678 Mil. Therefore, Darden Restaurants Inc's EV/EBITDA ratio for today is 13.31.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Darden Restaurants Inc's enterprise value is $9,019 Mil. Darden Restaurants Inc's revenue for the trailing twelve months (TTM) ended in Nov. 2014 was $7,038 Mil. Therefore, Darden Restaurants Inc's EV/Revenue ratio for today is 1.28.


Definition

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

Darden Restaurants 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
=6631.3772+0+2533.4
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+222.6+0-98.3
=9,289

Darden Restaurants Inc's Enterprise Value for the quarter that ended in Nov. 2014 is calculated as

Enterprise Value (Q: Nov. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=7559.7235+0+1519.2
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+35+0-157.5
=8,956

* 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.

Darden Restaurants Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=9018.800/332
=27.17

Darden Restaurants Inc's current Enterprise Value is $9,019 Mil.
Darden Restaurants Inc's Operating Income for the trailing twelve months (TTM) ended in Nov. 2014 was 154.4 (Feb. 2014 ) + 84.3 (May. 2014 ) + 74.5 (Aug. 2014 ) + 18.8 (Nov. 2014 ) = $332 Mil.

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

Darden Restaurants Inc's EV/EBITDA for today is:

Darden Restaurants Inc's current Enterprise Value is $9,019 Mil.
Darden Restaurants Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 262.9 (Feb. 2014 ) + 162.6 (May. 2014 ) + 153.2 (Aug. 2014 ) + 98.9 (Nov. 2014 ) = $678 Mil.

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

Darden Restaurants Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9018.800/7038
=1.28

Darden Restaurants Inc's current Enterprise Value is $9,019 Mil.
Darden Restaurants Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 2233.1 (Feb. 2014 ) + 1650.1 (May. 2014 ) + 1595.8 (Aug. 2014 ) + 1559 (Nov. 2014 ) = $7,038 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.

Darden Restaurants Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
ev 5,6965,8947,1296,6266,8177,4768,3988,7259,3749,289

Darden Restaurants Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev 8,7339,7128,6759,3748,6829,7889,3399,2897,4988,956
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