Switch to:
Wal-Mart Stores Inc (NYSE:WMT)
Enterprise Value
$273,895 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, Wal-Mart Stores Inc's enterprise value is $273,895 Mil. Wal-Mart Stores Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was $26,742 Mil. Therefore, Wal-Mart Stores Inc's EV/EBIT ratio for today is 10.24.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Wal-Mart Stores Inc's enterprise value is $273,895 Mil. Wal-Mart Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2015 was $35,984 Mil. Therefore, Wal-Mart Stores Inc's EV/EBITDA ratio for today is 7.61.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Wal-Mart Stores Inc's enterprise value is $273,895 Mil. Wal-Mart Stores Inc's revenue for the trailing twelve months (TTM) ended in Apr. 2015 was $485,517 Mil. Therefore, Wal-Mart Stores Inc's EV/Revenue ratio for today is 0.56.


Definition

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

Wal-Mart Stores Inc's Enterprise Value for the fiscal year that ended in Jan. 2015 is calculated as

Enterprise Value (A: Jan. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=274315.44+0+43692
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+6402+4543-9135
=319,817

Wal-Mart Stores Inc's Enterprise Value for the quarter that ended in Apr. 2015 is calculated as

Enterprise Value (Q: Apr. 2015 )
=Market Cap+Preferred Stock+Long-Term Debt
=251867.35+0+42964
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+6840+3416-7759
=297,328

* 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.

Wal-Mart Stores Inc's EV/EBIT for today is

Wal-Mart Stores Inc's current Enterprise Value is $273,895 Mil.
Wal-Mart Stores Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was 6772 (Jul. 2014 ) + 6285 (Oct. 2014 ) + 7986 (Jan. 2015 ) + 5699 (Apr. 2015 ) = $26,742 Mil.

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

Wal-Mart Stores Inc's EV/EBITDA for today is:

Wal-Mart Stores Inc's current Enterprise Value is $273,895 Mil.
Wal-Mart Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2015 was 9049 (Jul. 2014 ) + 8639 (Oct. 2014 ) + 10278 (Jan. 2015 ) + 8018 (Apr. 2015 ) = $35,984 Mil.

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

Wal-Mart Stores Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=273894.516/485517
=0.56

Wal-Mart Stores Inc's current Enterprise Value is $273,895 Mil.
Wal-Mart Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2015 was 120125 (Jul. 2014 ) + 119001 (Oct. 2014 ) + 131565 (Jan. 2015 ) + 114826 (Apr. 2015 ) = $485,517 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.

Wal-Mart Stores Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ev 226,049230,418242,708222,593237,533241,980260,725283,237295,575319,817

Wal-Mart Stores Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ev 283,237309,196307,477306,882295,575311,578290,210299,729319,817297,328
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)

GuruFocus Premium Plus Membership

FEEDBACK