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GuruFocus has detected 3 Warning Signs with Dick's Sporting Goods Inc $DKS.
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Dick's Sporting Goods Inc (NYSE:DKS)
Enterprise Value
$4,719 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, Dick's Sporting Goods Inc's enterprise value is $4,719 Mil. Dick's Sporting Goods Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $464 Mil. Therefore, Dick's Sporting Goods Inc's EV/EBIT ratio for today is 10.16.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Dick's Sporting Goods Inc's enterprise value is $4,719 Mil. Dick's Sporting Goods Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2017 was $703 Mil. Therefore, Dick's Sporting Goods Inc's EV/EBITDA ratio for today is 6.71.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Dick's Sporting Goods Inc's enterprise value is $4,719 Mil. Dick's Sporting Goods Inc's revenue for the trailing twelve months (TTM) ended in Apr. 2017 was $8,087 Mil. Therefore, Dick's Sporting Goods Inc's EV/Revenue ratio for today is 0.58.


Definition

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

Dick's Sporting Goods Inc's Enterprise Value for the fiscal year that ended in Jan. 2017 is calculated as

Enterprise Value (A: Jan. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=5693.028+0+4.679
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0.646+0-164.777
=5,534

Dick's Sporting Goods Inc's Enterprise Value for the quarter that ended in Apr. 2017 is calculated as

Enterprise Value (Q: Apr. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=5758.1505+0+96.97
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+0.648+0-108.4
=5,747

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Dick's Sporting Goods Inc's EV/EBIT for today is

Dick's Sporting Goods Inc's current Enterprise Value is $4,719 Mil.
Dick's Sporting Goods Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 149.1 (Jul. 2016 ) + 77.535 (Oct. 2016 ) + 144.864 (Jan. 2017 ) + 92.947 (Apr. 2017 ) = $464 Mil.

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

Dick's Sporting Goods Inc's EV/EBITDA for today is:

Dick's Sporting Goods Inc's current Enterprise Value is $4,719 Mil.
Dick's Sporting Goods Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2017 was 197.641 (Jul. 2016 ) + 130.135 (Oct. 2016 ) + 229.567 (Jan. 2017 ) + 145.991 (Apr. 2017 ) = $703 Mil.

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

Dick's Sporting Goods Inc's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=4719.028/8086.889
=0.58

Dick's Sporting Goods Inc's current Enterprise Value is $4,719 Mil.
Dick's Sporting Goods Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2017 was 1967.857 (Jul. 2016 ) + 1810.347 (Oct. 2016 ) + 2483.433 (Jan. 2017 ) + 1825.252 (Apr. 2017 ) = $8,087 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Dick's Sporting Goods Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev 3,7451,3362,4853,8804,4275,6676,4215,2814,2545,534

Dick's Sporting Goods Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev 5,2816,3935,8145,3184,2545,3725,7186,4505,5345,747
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