+1
Under review

Enterprise Value Calculations

Thomas Niel 4 years ago in Website updated by Hopping Freights 9 months ago 9

I'm curious what is going into SA's Enterprise Value calculations for each stock. I'm doing a comps analysis for an article, but it appears the EV totals are not matching up with the standard (Market Value + Debt +Minority Interest + Preferred Stock)-(Cash & Cash Equivalent) calculation. Are other types of liabilities such as capital leases/similar obligations being added to the EV?

Yes, I agree, from what I can tell, the EV number is flat out wrong for many stocks.  Look at WING (Wingstop, inc.) today.  1.4B market cap + 140M of debt and 9m of cash = 1.54B Enterprise value.  

The key data section shows 1.1B EV.


Here is a screenshot:



Under review

Hi,


Thanks for reporting this issue. We will speak with our data provider and get back to you.

The calculation is:


Market Value           
- Cash                       
+ Total Debt              
+ Preferred Equity     
+ Minority Interest    


The data for WING is outdated and they will update. Which other stocks do you see the wrong data?




Thanks Daniel.  I only noticed one.  I will keep an eye out, because I like to use EV/EBITDA as my core valuation metric.  Seems odd that one stock would show the wrong calculation and not other stocks.

Every equity we review on your site has an incorrect Enterprise Value and therefore erroneous EV/Sales, EV/ EBIT, and EV/EBITDA.

Hi,


Our EV value is updated quarterly. Is it possible that's where you see the discrepancies? We are soon going to make this a daily number (as it should be). 


Thanks,

Daniel

Daniel - 


Enterprise Value is still showing up wrong!!! I posted this error eight months ago.   It is a pretty serious error that should be prioritized.  If that is the issue (only chainging it quarterly), please fix it ASAP.  A lot of people use EV/EBITDA as their primary valuation metric, and it is widely accepted and widely used.  You could be leading people to make bad investment decisions.   


-Leonard 

This is a high priority issue for us and we are working on it. 

Was this ever fixed? The EV calculation still appears to be wrong. For example, APPL's current MV is $2301.48. Cash is 76.83, Total Debt is 112.04. They have no preferred stock or minority interest - so this is simple: 2301.48 - 76.83 + 112.04 = 2336.69. However SA has EV at 2217.95. A HUGE difference! I am using the current numbers. I pay a lot for this subscription. I need a service that gets this right as I use EV as my chief metric. PLEASE FIX.