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GuruFocus has detected 2 Warning Signs with Monster Beverage Corp $MNST.
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Monster Beverage Corp (NAS:MNST)
Enterprise Value
$24,352 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, Monster Beverage Corp's enterprise value is $24,352 Mil. Monster Beverage Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,062 Mil. Therefore, Monster Beverage Corp's EV/EBIT ratio for today is 22.93.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Monster Beverage Corp's enterprise value is $24,352 Mil. Monster Beverage Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $1,101 Mil. Therefore, Monster Beverage Corp's EV/EBITDA ratio for today is 22.12.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Monster Beverage Corp's enterprise value is $24,352 Mil. Monster Beverage Corp's revenue for the trailing twelve months (TTM) ended in Sep. 2016 was $2,941 Mil. Therefore, Monster Beverage Corp's EV/Revenue ratio for today is 8.28.


Definition

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

Monster Beverage Corp's Enterprise Value for the fiscal year that ended in Dec. 2015 is calculated as

Enterprise Value (A: Dec. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=30221.955+0+0
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0+0-2920.027
=27,302

Monster Beverage Corp's Enterprise Value for the quarter that ended in Sep. 2016 is calculated as

Enterprise Value (Q: Sep. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=27958.4432+0+0
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0+0-599.179
=27,359

* 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.

Monster Beverage Corp's EV/EBIT for today is

Monster Beverage Corp's current Enterprise Value is $24,352 Mil.
Monster Beverage Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 228.448 (Dec. 2015 ) + 254.713 (Mar. 2016 ) + 288.523 (Jun. 2016 ) + 290.375 (Sep. 2016 ) = $1,062 Mil.

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

Monster Beverage Corp's EV/EBITDA for today is:

Monster Beverage Corp's current Enterprise Value is $24,352 Mil.
Monster Beverage Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 237.551 (Dec. 2015 ) + 263.737 (Mar. 2016 ) + 298.828 (Jun. 2016 ) + 300.92 (Sep. 2016 ) = $1,101 Mil.

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

Monster Beverage Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=24352.415/2941.061
=8.28

Monster Beverage Corp's current Enterprise Value is $24,352 Mil.
Monster Beverage Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 645.433 (Dec. 2015 ) + 680.186 (Mar. 2016 ) + 827.488 (Jun. 2016 ) + 787.954 (Sep. 2016 ) = $2,941 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.

Monster Beverage Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev 2,8954,0522,8153,0394,0517,2608,43810,75017,02327,302

Monster Beverage Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev 11,04914,37317,02322,53824,44024,61427,30224,04530,11027,359
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