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TAL Education Group (NYSE:XRS)
Enterprise Value
$2,222.5 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, TAL Education Group's enterprise value is $2,222.5 Mil. TAL Education Group's operating income for the trailing twelve months (TTM) ended in May. 2014 was $64.4 Mil. Therefore, TAL Education Group's EV/EBIT ratio for today is 34.51.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, TAL Education Group's enterprise value is $2,222.5 Mil. TAL Education Group's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $76.9 Mil. Therefore, TAL Education Group's EV/EBITDA ratio for today is 28.92.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, TAL Education Group's enterprise value is $2,222.5 Mil. TAL Education Group's revenue for the trailing twelve months (TTM) ended in May. 2014 was $341.5 Mil. Therefore, TAL Education Group's EV/Revenue ratio for today is 6.51.


Definition

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

TAL Education Group'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
=1870.7964+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0-270.061
=1,600.7

TAL Education Group'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
=1813.2213+0+0
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0+0.285-578.538
=1,235.0

* 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.

TAL Education Group's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=2222.500/64.396
=34.51

TAL Education Group's current Enterprise Value is $2,222.5 Mil.
TAL Education Group's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 24.44 (Aug. 2013 ) + 11.893 (Nov. 2013 ) + 14.396 (Feb. 2014 ) + 13.667 (May. 2014 ) = $64.4 Mil.

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

TAL Education Group's EV/EBITDA for today is:

TAL Education Group's current Enterprise Value is $2,222.5 Mil.
TAL Education Group's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 24.44 (Aug. 2013 ) + 11.893 (Nov. 2013 ) + 24.407 (Feb. 2014 ) + 16.122 (May. 2014 ) = $76.9 Mil.

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

TAL Education Group's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=2222.500/341.523
=6.51

TAL Education Group's current Enterprise Value is $2,222.5 Mil.
TAL Education Group's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 91.968 (Aug. 2013 ) + 73.53 (Nov. 2013 ) + 86.999 (Feb. 2014 ) + 89.026 (May. 2014 ) = $341.5 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.

TAL Education Group Annual Data

Feb09Feb10Feb11Feb12Feb13Feb14
ev 0.00.00.00.00.00.0626.0652.2484.91,600.7

TAL Education Group Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev 663.3606.7362.8467.8509.3849.3657.81,256.81,600.71,235.0
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