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GuruFocus has detected 5 Warning Signs with Micron Technology Inc $MU.
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Micron Technology Inc (NAS:MU)
Enterprise Value
$32,459 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, Micron Technology Inc's enterprise value is $32,459 Mil. Micron Technology Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $269 Mil. Therefore, Micron Technology Inc's EV/EBIT ratio for today is 120.67.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Micron Technology Inc's enterprise value is $32,459 Mil. Micron Technology Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2016 was $3,283 Mil. Therefore, Micron Technology Inc's EV/EBITDA ratio for today is 9.89.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Micron Technology Inc's enterprise value is $32,459 Mil. Micron Technology Inc's revenue for the trailing twelve months (TTM) ended in Nov. 2016 was $13,019 Mil. Therefore, Micron Technology Inc's EV/Revenue ratio for today is 2.49.


Definition

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

Micron Technology Inc's Enterprise Value for the fiscal year that ended in Aug. 2016 is calculated as

Enterprise Value (A: Aug. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=17100.13+0+9154
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+756+848-4398
=23,460

Micron Technology Inc's Enterprise Value for the quarter that ended in Nov. 2016 is calculated as

Enterprise Value (Q: Nov. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=20391.273+0+8490
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+1155+848-4169
=26,715

* 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.

Micron Technology Inc's EV/EBIT for today is

Micron Technology Inc's current Enterprise Value is $32,459 Mil.
Micron Technology Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 1 (Feb. 2016 ) + -51 (May. 2016 ) + -33 (Aug. 2016 ) + 352 (Nov. 2016 ) = $269 Mil.

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

Micron Technology Inc's EV/EBITDA for today is:

Micron Technology Inc's current Enterprise Value is $32,459 Mil.
Micron Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2016 was 775 (Feb. 2016 ) + 704 (May. 2016 ) + 681 (Aug. 2016 ) + 1123 (Nov. 2016 ) = $3,283 Mil.

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

Micron Technology Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=32459.229/13019
=2.49

Micron Technology Inc's current Enterprise Value is $32,459 Mil.
Micron Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2016 was 2934 (Feb. 2016 ) + 2898 (May. 2016 ) + 3217 (Aug. 2016 ) + 3970 (Nov. 2016 ) = $13,019 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.

Micron Technology Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
ev 11,0797,4569,5457,6657,1577,74017,97337,75922,53623,460

Micron Technology Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ev 37,75940,98836,09533,79522,53621,20115,58718,68824,40026,715
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