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GuruFocus has detected 2 Warning Signs with Bed Bath & Beyond Inc $BBBY.
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Bed Bath & Beyond Inc (NAS:BBBY)
EV-to-EBIT
5.76 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Bed Bath & Beyond Inc's enterprise value is $6,936 Mil. Bed Bath & Beyond Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $1,204 Mil. Therefore, Bed Bath & Beyond Inc's EV/EBIT ratio for today is 5.76.

BBBY' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.4   Max: 12.6
Current: 5.77

5.4
12.6

During the past 13 years, the highest EV/EBIT Ratio of Bed Bath & Beyond Inc was 12.60. The lowest was 5.40. And the median was 8.80.

BBBY's EV-to-EBIT is ranked higher than
91% of the 1063 Companies
in the Global Specialty Retail industry.

( Industry Median: 15.73 vs. BBBY: 5.77 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Bed Bath & Beyond Inc's enterprise value for the quarter that ended in Nov. 2016 was $7,754 Mil. Bed Bath & Beyond Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $1,204 Mil. Bed Bath & Beyond Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 was 15.53%.


Definition

Bed Bath & Beyond Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=6936.391/1203.864
=5.76

Bed Bath & Beyond Inc's current Enterprise Value is $6,936 Mil.
Bed Bath & Beyond Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 498.582 (Feb. 2016 ) + 213.026 (May. 2016 ) + 280.973 (Aug. 2016 ) + 211.283 (Nov. 2016 ) = $1,204 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).

Bed Bath & Beyond Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Nov. 2016 )=EBIT (TTM)/Enterprise Value (Q: Nov. 2016 )
=1203.864/7754.3202
=15.53 %

Bed Bath & Beyond Inc's Enterprise Value for the quarter that ended in Nov. 2016 was $7,754 Mil.
Bed Bath & Beyond Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 498.582 (Feb. 2016 ) + 213.026 (May. 2016 ) + 280.973 (Aug. 2016 ) + 211.283 (Nov. 2016 ) = $1,204 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.

Bed Bath & Beyond Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev2ebit 12.068.497.219.608.027.857.058.108.705.94

Bed Bath & Beyond Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ev2ebit 7.719.008.708.537.416.855.945.786.206.44
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