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GuruFocus has detected 1 Warning Sign with Tesco PLC $TSCDY.
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Tesco PLC (OTCPK:TSCDY)
Enterprise Value
$25,828 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, Tesco PLC's enterprise value is $25,828 Mil. Tesco PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $828 Mil. Therefore, Tesco PLC's EV/EBIT ratio for today is 31.21.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Tesco PLC's enterprise value is $25,828 Mil. Tesco PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $2,458 Mil. Therefore, Tesco PLC's EV/EBITDA ratio for today is 10.51.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Tesco PLC's enterprise value is $25,828 Mil. Tesco PLC's revenue for the trailing twelve months (TTM) ended in Feb. 2017 was $69,896 Mil. Therefore, Tesco PLC's EV/Revenue ratio for today is 0.37.


Definition

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

Tesco PLC's Enterprise Value for the fiscal year that ended in Feb. 2017 is calculated as

Enterprise Value (A: Feb. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=19047.5403+0+11791.25
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+3200+-30-8897.5
=25,111

Tesco PLC's Enterprise Value for the quarter that ended in Feb. 2017 is calculated as

Enterprise Value (Q: Feb. 2017 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=19047.5403+0+11791.25
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+3200+-30-8897.5
=25,111

* 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.

Tesco PLC's EV/EBIT for today is

Tesco PLC's current Enterprise Value is $25,828 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Tesco PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $828 Mil.

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

Tesco PLC's EV/EBITDA for today is:

Tesco PLC's current Enterprise Value is $25,828 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Tesco PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $2,458 Mil.

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

Tesco PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=25827.757/69896.25
=0.37

Tesco PLC's current Enterprise Value is $25,828 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Tesco PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $69,896 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.

Tesco PLC Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ev 74,62753,02765,19565,92553,62757,29857,38345,76430,18425,111

Tesco PLC Semi-Annual Data

Aug12Feb13Aug13Feb14Aug14Feb15Aug15Feb16Aug16Feb17
ev 55,86857,29859,36257,38346,25845,76439,22630,18425,72825,111
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