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Family Dollar Stores Inc (NYSE:FDO)
Enterprise Value
$9,563 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, Family Dollar Stores Inc's enterprise value is $9,563 Mil. Family Dollar Stores Inc's operating income for the trailing twelve months (TTM) ended in May. 2014 was $657 Mil. Therefore, Family Dollar Stores Inc's EV/EBIT ratio for today is 14.55.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Family Dollar Stores Inc's enterprise value is $9,563 Mil. Family Dollar Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $1,016 Mil. Therefore, Family Dollar Stores Inc's EV/EBITDA ratio for today is 9.42.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Family Dollar Stores Inc's enterprise value is $9,563 Mil. Family Dollar Stores Inc's revenue for the trailing twelve months (TTM) ended in May. 2014 was $12,877 Mil. Therefore, Family Dollar Stores Inc's EV/Revenue ratio for today is 0.74.


Definition

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

Family Dollar Stores Inc's Enterprise Value for the fiscal year that ended in Aug. 2013 is calculated as

Enterprise Value (A: Aug. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=8193.2571+0+500.275
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+16.2+0-144.999
=8,565

Family Dollar Stores 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
=6671.024+0+484.188
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+292.2+0-181.741
=7,266

* 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.

Family Dollar Stores Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=9563.384/657.294
=14.55

Family Dollar Stores Inc's current Enterprise Value is $9,563 Mil.
Family Dollar Stores Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 155.591 (Aug. 2013 ) + 120.319 (Nov. 2013 ) + 260.576 (Feb. 2014 ) + 120.808 (May. 2014 ) = $657 Mil.

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

Family Dollar Stores Inc's EV/EBITDA for today is:

Family Dollar Stores Inc's current Enterprise Value is $9,563 Mil.
Family Dollar Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 225.55 (Aug. 2013 ) + 189.517 (Nov. 2013 ) + 402.449 (Feb. 2014 ) + 198.102 (May. 2014 ) = $1,016 Mil.

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

Family Dollar Stores Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=9563.384/12877.233
=0.74

Family Dollar Stores Inc's current Enterprise Value is $9,563 Mil.
Family Dollar Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 2502.266 (Aug. 2013 ) + 2499.691 (Nov. 2013 ) + 5216.312 (Feb. 2014 ) + 2658.964 (May. 2014 ) = $12,877 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.

Family Dollar Stores Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev 4,2433,1403,9114,2283,5734,0085,3296,5767,7908,565

Family Dollar Stores Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev 6,6968,3087,7908,8487,1837,6158,5658,5058,0757,266
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