Guararapes Confecciones S.A. is an integrated group operating in Brazil in the fashion retail, financial services and real estate sectors. Its main operation is the Riachuelo chain of department stores, which sells a portfolio of clothing, homewear and beauty products, with part of the apparel produced in its own factory. The group also operates independent store formats for its Casa Riachuelo and Carter's brands. In the financial services segment, its subsidiary Midway offers credit products such as the Riachuelo Card and personal loan, which are integrated into the retail shopping experience. The company has a national presence with hundreds of stores across Brazil, as well as an e-commerce operation. In addition, Guararapes has a real estate segment that includes the operation of the Midway Mall and the ownership of a portion of its stores.
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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