Switch to:
Rite Aid Corp (NYSE:RAD)
Enterprise Value
$14,623 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, Rite Aid Corp's enterprise value is $14,623 Mil. Rite Aid Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was $667 Mil. Therefore, Rite Aid Corp's EV/EBIT ratio for today is 21.91.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rite Aid Corp's enterprise value is $14,623 Mil. Rite Aid Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2016 was $1,206 Mil. Therefore, Rite Aid Corp's EV/EBITDA ratio for today is 12.13.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Rite Aid Corp's enterprise value is $14,623 Mil. Rite Aid Corp's revenue for the trailing twelve months (TTM) ended in May. 2016 was $32,273 Mil. Therefore, Rite Aid Corp's EV/Revenue ratio for today is 0.45.


Definition

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

Rite Aid Corp'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
=8329.6125+0+6967.288
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+26.848+0-124.471
=15,199

Rite Aid Corp'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
=8075.529+0+6948.762
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+25.64+0-144.84
=14,905

* 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.

Rite Aid Corp's EV/EBIT for today is

Rite Aid Corp's current Enterprise Value is $14,623 Mil.
Rite Aid Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2016 was 153.342 (Aug. 2015 ) + 214.89 (Nov. 2015 ) + 204.863 (Feb. 2016 ) + 94.216 (May. 2016 ) = $667 Mil.

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

Rite Aid Corp's EV/EBITDA for today is:

Rite Aid Corp's current Enterprise Value is $14,623 Mil.
Rite Aid Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 281.041 (Aug. 2015 ) + 351.324 (Nov. 2015 ) + 340.293 (Feb. 2016 ) + 233.004 (May. 2016 ) = $1,206 Mil.

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

Rite Aid Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=14623.352/32273.277
=0.45

Rite Aid Corp's current Enterprise Value is $14,623 Mil.
Rite Aid Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 7664.776 (Aug. 2015 ) + 8154.184 (Nov. 2015 ) + 8270.136 (Feb. 2016 ) + 8184.181 (May. 2016 ) = $32,273 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.

Rite Aid Corp Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev 6,6928,4376,2447,7697,4577,7027,57412,06313,33215,199

Rite Aid Corp Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
ev 12,01213,71511,67010,99813,33214,16215,91815,38715,19914,905
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