Assaí Atacadista is a Brazilian food retail company that operates in the cash and carry format. Its business model serves both merchants and entrepreneurs (B2B) and end consumers (B2C) who seek savings in their purchases. The company has a large national presence, with hundreds of stores in all regions of Brazil. In addition to a competitively priced product range, the company has expanded store services, such as butchers, bakeries, and ice cream stores. Assaí complements the physical operation with a digital strategy that includes the relationship app 'Meu Assaí' and partnerships with delivery companies (last mile). In addition, the company generates revenue by renting spaces in galleries attached to its stores and offers financial services in partnership, such as the Passaí card.
Market capitalization, or "market cap", is the aggregate market value of a company represented in a dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares.
Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet.
The enterprise value-to-revenue multiple (EV/R) is a measure of the value of a stock that compares a company's enterprise value to its revenue. EV/R is one of several fundamental indicators that investors use to determine whether a stock is priced fairly. The EV/R multiple is also often used to determine a company's valuation in the case of a potential acquisition. It's also called the enterprise value-to-sales multiple.
The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company's cash earnings less non-cash expenses. It's best to use the EV/EBITDA metric when comparing companies within the same industry or sector. Typically, when evaluating a company, an EV/EBITDA value below 10 is seen as healthy.
It follows the same logic as the EV/EBITDA indicator, but instead of EBITDA, EBIT is used, which considers non-cash D&A expenses in the company's operating result.
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