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Pier 1 Imports Inc  (NYSE:PIR) Enterprise Value: $518 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-to-EBIT is calculated as enterprise value divided by its EBIT. As of today, Pier 1 Imports Inc's enterprise value is $518 Mil. Pier 1 Imports Inc's EBIT for the trailing twelve months (TTM) ended in Aug. 2017 was $56 Mil. Therefore, Pier 1 Imports Inc's EV/EBIT ratio for today is 9.33.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Pier 1 Imports Inc's enterprise value is $518 Mil. Pier 1 Imports Inc's EBITDA for the trailing twelve months (TTM) ended in Aug. 2017 was $117 Mil. Therefore, Pier 1 Imports Inc's EV/EBITDA ratio for today is 4.44.

EV-to-Revenue is calculated as enterprise value divided by its Revenue. As of today, Pier 1 Imports Inc's enterprise value is $518 Mil. Pier 1 Imports Inc's Revenue for the trailing twelve months (TTM) ended in Aug. 2017 was $1,821 Mil. Therefore, Pier 1 Imports Inc's EV/Revenue ratio for today is 0.28.


Historical Data

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

* Premium members only.

Pier 1 Imports Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,210.52 1,826.84 1,187.68 499.38 606.42

Pier 1 Imports Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 567.43 604.19 606.42 465.11 520.01

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

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

Pier 1 Imports Inc's Enterprise Value for the fiscal year that ended in Feb. 2017 is calculated as

Enterprise Value (A: Feb. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=559.8014+0+199.077
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+2+0-154.46
=606

Pier 1 Imports Inc's Enterprise Value for the quarter that ended in Aug. 2017 is calculated as

Enterprise Value (Q: Aug. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=354.474+0+198.485
+Current Portion of Long-Term Debt+Minority Interest-Cash And Cash Equivalents
+2+0-34.945
=520

* 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 (M) 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 (M), 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 (M). In this case the investor is basically getting the company for free and get paid for that.

1. EV-to-EBIT is calculated as enterprise value divided by its EBIT.

Pier 1 Imports Inc's EV/EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=518.293/55.557
=9.33

Pier 1 Imports Inc's current Enterprise Value is $518 Mil.
Pier 1 Imports Inc's EBIT for the trailing twelve months (TTM) ended in Aug. 2017 was 22.691 (Nov. 2016 ) + 45.549 (Feb. 2017 ) + -1.751 (May. 2017 ) + -10.932 (Aug. 2017 ) = $56 Mil.

2. EV-to-EBITDA is calculated as enterprise value divided by its EBITDA.

Pier 1 Imports Inc's EV/EBITDA for today is:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=518.293/116.615
=4.44

Pier 1 Imports Inc's current Enterprise Value is $518 Mil.
Pier 1 Imports Inc's EBITDA for the trailing twelve months (TTM) ended in Aug. 2017 was 37.484 (Nov. 2016 ) + 60.803 (Feb. 2017 ) + 14.035 (May. 2017 ) + 4.293 (Aug. 2017 ) = $117 Mil.

3. EV-to-Revenue is calculated as enterprise value divided by its Revenue.

Pier 1 Imports Inc's EV/Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=518.293/1821.385
=0.28

Pier 1 Imports Inc's current Enterprise Value is $518 Mil.
Pier 1 Imports Inc's EBITDA for the trailing twelve months (TTM) ended in Aug. 2017 was 475.901 (Nov. 2016 ) + 528.352 (Feb. 2017 ) + 409.525 (May. 2017 ) + 407.607 (Aug. 2017 ) = $1,821 Mil.

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


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