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Ulta Salon Cosmetics & Fragrances Inc (NAS:ULTA)
Enterprise Value
$7,635 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, Ulta Salon Cosmetics & Fragrances Inc's enterprise value is $7,635 Mil. Ulta Salon Cosmetics & Fragrances Inc's operating income for the trailing twelve months (TTM) ended in Jul. 2014 was $366 Mil. Therefore, Ulta Salon Cosmetics & Fragrances Inc's EV/EBIT ratio for today is 20.87.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Ulta Salon Cosmetics & Fragrances Inc's enterprise value is $7,635 Mil. Ulta Salon Cosmetics & Fragrances Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2014 was $484 Mil. Therefore, Ulta Salon Cosmetics & Fragrances Inc's EV/EBITDA ratio for today is 15.78.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Ulta Salon Cosmetics & Fragrances Inc's enterprise value is $7,635 Mil. Ulta Salon Cosmetics & Fragrances Inc's revenue for the trailing twelve months (TTM) ended in Jul. 2014 was $2,935 Mil. Therefore, Ulta Salon Cosmetics & Fragrances Inc's EV/Revenue ratio for today is 2.60.


Definition

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

Ulta Salon Cosmetics & Fragrances Inc's Enterprise Value for the fiscal year that ended in Jan. 2014 is calculated as

Enterprise Value (A: Jan. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=5524.95231+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-419.476
=5,105

Ulta Salon Cosmetics & Fragrances Inc's Enterprise Value for the quarter that ended in Jul. 2014 is calculated as

Enterprise Value (Q: Jul. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=6054.4416+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-463.204
=5,591

* 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.

Ulta Salon Cosmetics & Fragrances Inc's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=7635.396/365.885
=20.87

Ulta Salon Cosmetics & Fragrances Inc's current Enterprise Value is $7,635 Mil.
Ulta Salon Cosmetics & Fragrances Inc's Operating Income for the trailing twelve months (TTM) ended in Jul. 2014 was 72.887 (Oct. 2013 ) + 114.138 (Jan. 2014 ) + 80.881 (Apr. 2014 ) + 97.979 (Jul. 2014 ) = $366 Mil.

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

Ulta Salon Cosmetics & Fragrances Inc's EV/EBITDA for today is:

Ulta Salon Cosmetics & Fragrances Inc's current Enterprise Value is $7,635 Mil.
Ulta Salon Cosmetics & Fragrances Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2014 was 99.712 (Oct. 2013 ) + 142.849 (Jan. 2014 ) + 111.354 (Apr. 2014 ) + 129.878 (Jul. 2014 ) = $484 Mil.

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

Ulta Salon Cosmetics & Fragrances Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=7635.396/2934.869
=2.60

Ulta Salon Cosmetics & Fragrances Inc's current Enterprise Value is $7,635 Mil.
Ulta Salon Cosmetics & Fragrances Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2014 was 618.781 (Oct. 2013 ) + 868.082 (Jan. 2014 ) + 713.77 (Apr. 2014 ) + 734.236 (Jul. 2014 ) = $2,935 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.

Ulta Salon Cosmetics & Fragrances Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev 0008834461,1242,1194,4845,9795,105

Ulta Salon Cosmetics & Fragrances Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ev 5,2785,1705,6875,9415,2876,1487,9955,0865,1835,591
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