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Brinker International, Inc. (NYSE:EAT)
Enterprise Value
$3,877 Mil (As of Dec. 2013)

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, Brinker International, Inc.'s enterprise value is $4,166 Mil. Brinker International, Inc.'s operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $262 Mil. Therefore, Brinker International, Inc.'s EV/EBIT ratio for today is 15.90.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brinker International, Inc.'s enterprise value is $4,166 Mil. Brinker International, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $397 Mil. Therefore, Brinker International, Inc.'s EV/EBITDA ratio for today is 10.50.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Brinker International, Inc.'s enterprise value is $4,166 Mil. Brinker International, Inc.'s revenue for the trailing twelve months (TTM) ended in Dec. 2013 was $2,861 Mil. Therefore, Brinker International, Inc.'s EV/Revenue ratio for today is 1.46.


Definition

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

Brinker International, Inc.'s Enterprise Value for the fiscal year that ended in Jun. 2013 is calculated as

Enterprise Value (A: Jun. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=2659.1592+0+780.121
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+27.596+0-59.367
=3,408

Brinker International, Inc.'s Enterprise Value for the quarter that ended in Dec. 2013 is calculated as

Enterprise Value (Q: Dec. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=3106.1702+0+806.215
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+27.737+0-62.655
=3,877

* 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.

Brinker International, Inc.'s EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=4165.944/261.977
=15.90

Brinker International, Inc.'s current Enterprise Value is $4,166 Mil.
Brinker International, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 79.326 (Mar. 2013 ) + 69.339 (Jun. 2013 ) + 49.013 (Sep. 2013 ) + 64.299 (Dec. 2013 ) = $262 Mil.

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

Brinker International, Inc.'s EV/EBITDA for today is:

Brinker International, Inc.'s current Enterprise Value is $4,166 Mil.
Brinker International, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 113.121 (Mar. 2013 ) + 102.552 (Jun. 2013 ) + 82.751 (Sep. 2013 ) + 98.298 (Dec. 2013 ) = $397 Mil.

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

Brinker International, Inc.'s EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=4165.944/2861.146
=1.46

Brinker International, Inc.'s current Enterprise Value is $4,166 Mil.
Brinker International, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 742.759 (Mar. 2013 ) + 730.068 (Jun. 2013 ) + 683.924 (Sep. 2013 ) + 704.395 (Dec. 2013 ) = $2,861 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.

Brinker International, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev 3,7193,9193,5263,8222,7622,3741,6652,4712,9253,408

Brinker International, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev 2,2032,6232,6122,9253,2152,8463,2773,4083,4983,877
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