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Walgreen Co (NYSE:WAG)
Enterprise Value
$61,775 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, Walgreen Co's enterprise value is $61,775 Mil. Walgreen Co's operating income for the trailing twelve months (TTM) ended in May. 2014 was $4,254 Mil. Therefore, Walgreen Co's EV/EBIT ratio for today is 14.52.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Walgreen Co's enterprise value is $61,775 Mil. Walgreen Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $5,746 Mil. Therefore, Walgreen Co's EV/EBITDA ratio for today is 10.75.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Walgreen Co's enterprise value is $61,775 Mil. Walgreen Co's revenue for the trailing twelve months (TTM) ended in May. 2014 was $75,276 Mil. Therefore, Walgreen Co's EV/Revenue ratio for today is 0.82.


Definition

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

Walgreen Co's Enterprise Value for the fiscal year that ended in Aug. 2013 is calculated as

Enterprise Value (A: Aug. 2013 )
=Market Cap+Preferred Stock+Long-Term Debt
=45503.062+0+4477
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+570+0-2106
=48,444

Walgreen Co'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
=68625.8703+0+3747
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+780+68-2126
=71,095

* 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.

Walgreen Co's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=61775.286/4254
=14.52

Walgreen Co's current Enterprise Value is $61,775 Mil.
Walgreen Co's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 1029 (Aug. 2013 ) + 924 (Nov. 2013 ) + 1275 (Feb. 2014 ) + 1026 (May. 2014 ) = $4,254 Mil.

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

Walgreen Co's EV/EBITDA for today is:

Walgreen Co's current Enterprise Value is $61,775 Mil.
Walgreen Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 1354 (Aug. 2013 ) + 1481 (Nov. 2013 ) + 1547 (Feb. 2014 ) + 1364 (May. 2014 ) = $5,746 Mil.

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

Walgreen Co's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=61775.286/75276
=0.82

Walgreen Co's current Enterprise Value is $61,775 Mil.
Walgreen Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 17941 (Aug. 2013 ) + 18329 (Nov. 2013 ) + 19605 (Feb. 2014 ) + 19401 (May. 2014 ) = $75,276 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.

Walgreen Co Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev 35,64945,97948,52145,31637,03933,25625,75132,16537,77648,444

Walgreen Co Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev 29,91826,60537,77636,62642,71648,50548,44460,36068,18571,095
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