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Constellation Brands Inc (NYSE:STZ)
Enterprise Value
$23,782 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, Constellation Brands Inc's enterprise value is $23,782 Mil. Constellation Brands Inc's operating income for the trailing twelve months (TTM) ended in May. 2014 was $2,759 Mil. Therefore, Constellation Brands Inc's EV/EBIT ratio for today is 8.62.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Constellation Brands Inc's enterprise value is $23,782 Mil. Constellation Brands Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $2,962 Mil. Therefore, Constellation Brands Inc's EV/EBITDA ratio for today is 8.03.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Constellation Brands Inc's enterprise value is $23,782 Mil. Constellation Brands Inc's revenue for the trailing twelve months (TTM) ended in May. 2014 was $5,720 Mil. Therefore, Constellation Brands Inc's EV/Revenue ratio for today is 4.16.


Definition

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

Constellation Brands Inc's Enterprise Value for the fiscal year that ended in Feb. 2014 is calculated as

Enterprise Value (A: Feb. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=15514.8141+0+6373.3
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+647.2+0-63.9
=22,471

Constellation Brands Inc's Enterprise Value for the quarter that ended in May. 2014 is calculated as

Enterprise Value (Q: May. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=16135.2927+0+6345.6
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+849.6+0-378
=22,952

* 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.

Constellation Brands Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=23781.988/2759.4
=8.62

Constellation Brands Inc's current Enterprise Value is $23,782 Mil.
Constellation Brands Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 1674 (Aug. 2013 ) + 363.8 (Nov. 2013 ) + 329.4 (Feb. 2014 ) + 392.2 (May. 2014 ) = $2,759 Mil.

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

Constellation Brands Inc's EV/EBITDA for today is:

Constellation Brands Inc's current Enterprise Value is $23,782 Mil.
Constellation Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 1721.9 (Aug. 2013 ) + 425.9 (Nov. 2013 ) + 372.7 (Feb. 2014 ) + 441.7 (May. 2014 ) = $2,962 Mil.

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

Constellation Brands Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=23781.988/5720.3
=4.16

Constellation Brands Inc's current Enterprise Value is $23,782 Mil.
Constellation Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 1459.8 (Aug. 2013 ) + 1443.3 (Nov. 2013 ) + 1291.2 (Feb. 2014 ) + 1526 (May. 2014 ) = $5,720 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, Cash and Cash Equivalents


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Constellation Brands Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ev 9,5099,0869,6678,9866,9517,1347,5187,28811,14922,471

Constellation Brands Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev 7,2886,7669,81410,38111,14914,44217,44820,44922,47122,952
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