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Sears Holdings Corp (NAS:SHLD)
Enterprise Value
$5,116 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, Sears Holdings Corp's enterprise value is $5,116 Mil. Sears Holdings Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was $-1,208 Mil. Therefore, Sears Holdings Corp's EV/EBIT ratio for today is -4.23.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Sears Holdings Corp's enterprise value is $5,116 Mil. Sears Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2016 was $-813 Mil. Therefore, Sears Holdings Corp's EV/EBITDA ratio for today is -6.29.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Sears Holdings Corp's enterprise value is $5,116 Mil. Sears Holdings Corp's revenue for the trailing twelve months (TTM) ended in Apr. 2016 was $24,658 Mil. Therefore, Sears Holdings Corp's EV/Revenue ratio for today is 0.21.


Definition

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

Sears Holdings Corp's Enterprise Value for the fiscal year that ended in Jan. 2016 is calculated as

Enterprise Value (A: Jan. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1813.65+0+2108
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+868+7-238
=4,559

Sears Holdings Corp's Enterprise Value for the quarter that ended in Apr. 2016 is calculated as

Enterprise Value (Q: Apr. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=1752.66+0+3312
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+446+7-286
=5,232

* 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.

Sears Holdings Corp's EV/EBIT for today is

Sears Holdings Corp's current Enterprise Value is $5,116 Mil.
Sears Holdings Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was 98 (Jul. 2015 ) + -365 (Oct. 2015 ) + -574 (Jan. 2016 ) + -367 (Apr. 2016 ) = $-1,208 Mil.

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

Sears Holdings Corp's EV/EBITDA for today is:

Sears Holdings Corp's current Enterprise Value is $5,116 Mil.
Sears Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2016 was 212 (Jul. 2015 ) + -271 (Oct. 2015 ) + -482 (Jan. 2016 ) + -272 (Apr. 2016 ) = $-813 Mil.

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

Sears Holdings Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=5115.619/24658
=0.21

Sears Holdings Corp's current Enterprise Value is $5,116 Mil.
Sears Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2016 was 6211 (Jul. 2015 ) + 5750 (Oct. 2015 ) + 7303 (Jan. 2016 ) + 5394 (Apr. 2016 ) = $24,658 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.

Sears Holdings Corp Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
ev 22,52116,3348,7888,3257,9156,1696,9566,7926,9394,559

Sears Holdings Corp Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ev 6,7898,3717,9278,3226,9397,8613,6375,2594,5595,232
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