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Pier 1 Imports Inc (NYSE:PIR)
Enterprise Value
$446 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, Pier 1 Imports Inc's enterprise value is $446 Mil. Pier 1 Imports Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was $55 Mil. Therefore, Pier 1 Imports Inc's EV/EBIT ratio for today is 8.18.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Pier 1 Imports Inc's enterprise value is $446 Mil. Pier 1 Imports Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2016 was $112 Mil. Therefore, Pier 1 Imports Inc's EV/EBITDA ratio for today is 3.97.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Pier 1 Imports Inc's enterprise value is $446 Mil. Pier 1 Imports Inc's revenue for the trailing twelve months (TTM) ended in May. 2016 was $1,879 Mil. Therefore, Pier 1 Imports 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.

Pier 1 Imports Inc's Enterprise Value for the fiscal year that ended in Feb. 2016 is calculated as

Enterprise Value (A: Feb. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=412.3418+0+200.255
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+2+0-115.221
=499

Pier 1 Imports Inc's Enterprise Value for the quarter that ended in May. 2016 is calculated as

Enterprise Value (Q: May. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=470.848+0+199.962
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+2+0-128.031
=545

* 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.

Pier 1 Imports Inc's EV/EBIT for today is

Pier 1 Imports Inc's current Enterprise Value is $446 Mil.
Pier 1 Imports Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was 8.279 (Aug. 2015 ) + 19.945 (Nov. 2015 ) + 33.384 (Feb. 2016 ) + -7.027 (May. 2016 ) = $55 Mil.

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

Pier 1 Imports Inc's EV/EBITDA for today is:

Pier 1 Imports Inc's current Enterprise Value is $446 Mil.
Pier 1 Imports Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 22.32 (Aug. 2015 ) + 33.866 (Nov. 2015 ) + 47.798 (Feb. 2016 ) + 8.406 (May. 2016 ) = $112 Mil.

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

Pier 1 Imports Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=446.302/1878.596
=0.24

Pier 1 Imports Inc's current Enterprise Value is $446 Mil.
Pier 1 Imports Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 429.956 (Aug. 2015 ) + 472.547 (Nov. 2015 ) + 557.723 (Feb. 2016 ) + 418.37 (May. 2016 ) = $1,879 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 & 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 own currency.

Pier 1 Imports Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev 613555475548921,6062,2111,8271,188499

Pier 1 Imports Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
ev 1,8271,6401,6151,4341,1881,2441,111758499545
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