Switch to:
GuruFocus has detected 8 Warning Signs with Guess? Inc $GES.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Guess? Inc (NYSE:GES)
Enterprise Value
$541 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, Guess? Inc's enterprise value is $541 Mil. Guess? Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $56 Mil. Therefore, Guess? Inc's EV/EBIT ratio for today is 9.74.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Guess? Inc's enterprise value is $541 Mil. Guess? Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2017 was $107 Mil. Therefore, Guess? Inc's EV/EBITDA ratio for today is 5.07.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Guess? Inc's enterprise value is $541 Mil. Guess? Inc's revenue for the trailing twelve months (TTM) ended in Jan. 2017 was $2,209 Mil. Therefore, Guess? Inc's EV/Revenue ratio for today is 0.24.


Definition

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

Guess? Inc's Enterprise Value for the fiscal year that ended in Jan. 2017 is calculated as

Enterprise Value (A: Jan. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1070.49633+0+23.482
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0.566+0-396.129
=698

Guess? Inc's Enterprise Value for the quarter that ended in Jan. 2017 is calculated as

Enterprise Value (Q: Jan. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1072.2969+0+23.482
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0.566+0-396.129
=700

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Guess? Inc's EV/EBIT for today is

Guess? Inc's current Enterprise Value is $541 Mil.
Guess? Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was -29.425 (Apr. 2016 ) + 43.218 (Jul. 2016 ) + 16.109 (Oct. 2016 ) + 25.605 (Jan. 2017 ) = $56 Mil.

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

Guess? Inc's EV/EBITDA for today is:

Guess? Inc's current Enterprise Value is $541 Mil.
Guess? Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was -12.745 (Apr. 2016 ) + 60.587 (Jul. 2016 ) + 33.254 (Oct. 2016 ) + 25.605 (Jan. 2017 ) = $107 Mil.

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

Guess? Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=540.709/2209.368
=0.24

Guess? Inc's current Enterprise Value is $541 Mil.
Guess? Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 448.815 (Apr. 2016 ) + 544.959 (Jul. 2016 ) + 536.321 (Oct. 2016 ) + 679.273 (Jan. 2017 ) = $2,209 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Guess? Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev 3,3041,2473,2033,5322,2242,0331,8901,1421,128698

Guess? Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev 1,5391,1421,1241,4241,3801,1281,161864825700
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)
FEEDBACK