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GuruFocus has detected 1 Warning Sign with AutoZone Inc $AZO.
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AutoZone Inc (NYSE:AZO)
EV-to-EBIT
12.43 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, AutoZone Inc's enterprise value is $25,906 Mil. AutoZone Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $2,085 Mil. Therefore, AutoZone Inc's EV/EBIT ratio for today is 12.43.

AZO' s EV-to-EBIT Range Over the Past 10 Years
Min: 6.8   Max: 15.2
Current: 12.42

6.8
15.2

During the past 13 years, the highest EV/EBIT Ratio of AutoZone Inc was 15.20. The lowest was 6.80. And the median was 10.90.

AZO's EV-to-EBIT is ranked higher than
62% of the 1045 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.87 vs. AZO: 12.42 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). AutoZone Inc's enterprise value for the quarter that ended in Feb. 2017 was $25,918 Mil. AutoZone Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $2,085 Mil. AutoZone Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 was 8.04%.


Definition

AutoZone Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=25906.413/2084.982
=12.43

AutoZone Inc's current Enterprise Value is $25,906 Mil.
AutoZone Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 536.374 (May. 2016 ) + 705.737 (Aug. 2016 ) + 458.902 (Nov. 2016 ) + 383.969 (Feb. 2017 ) = $2,085 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

AutoZone Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Feb. 2017 )=EBIT (TTM)/Enterprise Value (Q: Feb. 2017 )
=2084.982/25918.157
=8.04 %

AutoZone Inc's Enterprise Value for the quarter that ended in Feb. 2017 was $25,918 Mil.
AutoZone Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 536.374 (May. 2016 ) + 705.737 (Aug. 2016 ) + 458.902 (Nov. 2016 ) + 383.969 (Feb. 2017 ) = $2,085 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

AutoZone Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
ev2ebit 9.209.058.579.2810.4210.4610.4111.8213.5312.79

AutoZone Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebit 12.2213.1813.2713.5314.2713.9413.4312.7913.0812.43
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