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GuruFocus has detected 6 Warning Signs with Matthews International Corp $MATW.
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Matthews International Corp (NAS:MATW)
Enterprise Value
$2,962 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, Matthews International Corp's enterprise value is $2,962 Mil. Matthews International Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $127 Mil. Therefore, Matthews International Corp's EV/EBIT ratio for today is 23.41.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Matthews International Corp's enterprise value is $2,962 Mil. Matthews International Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $191 Mil. Therefore, Matthews International Corp's EV/EBITDA ratio for today is 15.47.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Matthews International Corp's enterprise value is $2,962 Mil. Matthews International Corp's revenue for the trailing twelve months (TTM) ended in Dec. 2016 was $1,475 Mil. Therefore, Matthews International Corp's EV/Revenue ratio for today is 2.01.


Definition

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

Matthews International Corp's Enterprise Value for the fiscal year that ended in Sep. 2016 is calculated as

Enterprise Value (A: Sep. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1952.8264+0+844.807
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+27.747+0.669-55.711
=2,770

Matthews International Corp's Enterprise Value for the quarter that ended in Dec. 2016 is calculated as

Enterprise Value (Q: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=2478.4125+0+913.571
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+24.25+0.614-106.407
=3,310

* 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.

Matthews International Corp's EV/EBIT for today is

Matthews International Corp's current Enterprise Value is $2,962 Mil.
Matthews International Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 26.478 (Mar. 2016 ) + 41.654 (Jun. 2016 ) + 39.581 (Sep. 2016 ) + 18.845 (Dec. 2016 ) = $127 Mil.

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

Matthews International Corp's EV/EBITDA for today is:

Matthews International Corp's current Enterprise Value is $2,962 Mil.
Matthews International Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 42.888 (Mar. 2016 ) + 58.774 (Jun. 2016 ) + 55.783 (Sep. 2016 ) + 34.004 (Dec. 2016 ) = $191 Mil.

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

Matthews International Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=2962.315/1475.23
=2.01

Matthews International Corp's current Enterprise Value is $2,962 Mil.
Matthews International Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 367.176 (Mar. 2016 ) + 382.061 (Jun. 2016 ) + 376.995 (Sep. 2016 ) + 348.998 (Dec. 2016 ) = $1,475 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.

Matthews International Corp Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev 1,4861,8001,2711,2501,1331,0881,3682,1132,4442,770

Matthews International Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev 2,1132,2602,3352,3742,4442,6152,5292,6332,7703,310
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