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GuruFocus has detected 2 Warning Signs with Pool Corp $POOL.
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Pool Corp (NAS:POOL)
Enterprise Value
$5,005 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, cash equivalents, and marketable securities.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Pool Corp's enterprise value is $5,005 Mil. Pool Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was $269 Mil. Therefore, Pool Corp's EV/EBIT ratio for today is 18.60.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Pool Corp's enterprise value is $5,005 Mil. Pool Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2017 was $293 Mil. Therefore, Pool Corp's EV/EBITDA ratio for today is 17.09.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Pool Corp's enterprise value is $5,005 Mil. Pool Corp's revenue for the trailing twelve months (TTM) ended in Jun. 2017 was $2,671 Mil. Therefore, Pool Corp's EV/Revenue ratio for today is 1.87.


Definition

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

Pool Corp's Enterprise Value for the fiscal year that ended in Dec. 2016 is calculated as

Enterprise Value (A: Dec. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=4287.3306+0+436.937
+Current Portion of Long-Term Debt+Minority Interest-Cash, Cash Equivalents, Marketable Securities
+1.105+0-21.956
=4,703

Pool Corp's Enterprise Value for the quarter that ended in Jun. 2017 is calculated as

Enterprise Value (Q: Jun. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=4878.0595+0+538.579
+Current Portion of Long-Term Debt+Minority Interest-Cash, Cash Equivalents, Marketable Securities
+14.901+0-26.666
=5,405

* 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.

Pool Corp's EV/EBIT for today is

Pool Corp's current Enterprise Value is $5,005 Mil.
Pool Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was 74.166 (Sep. 2016 ) + 9.743 (Dec. 2016 ) + 30.998 (Mar. 2017 ) + 154.186 (Jun. 2017 ) = $269 Mil.

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

Pool Corp's EV/EBITDA for today is:

Pool Corp's current Enterprise Value is $5,005 Mil.
Pool Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2017 was 79.996 (Sep. 2016 ) + 15.412 (Dec. 2016 ) + 36.92 (Mar. 2017 ) + 160.624 (Jun. 2017 ) = $293 Mil.

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

Pool Corp's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=5005.144/2671.268
=1.87

Pool Corp's current Enterprise Value is $5,005 Mil.
Pool Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2017 was 691.429 (Sep. 2016 ) + 445.235 (Dec. 2016 ) + 546.441 (Mar. 2017 ) + 988.163 (Jun. 2017 ) = $2,671 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, Cash Equivalents, Marketable Securities, 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.

Pool Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev 1,2781,1741,1681,3021,6562,1782,8773,0663,7674,703

Pool Corp Quarterly Data

Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17Jun17
ev 3,4363,4693,4473,7674,1274,4144,3024,7035,4045,405
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