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Best Buy Co Inc (NYSE:BBY)
EV/EBIT
6.78 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Best Buy Co Inc's enterprise value is $9,829 Mil. Best Buy Co Inc's operating income for the trailing twelve months (TTM) ended in Jan. 2015 was $1,450 Mil. Therefore, Best Buy Co Inc's EV/EBIT ratio for today is 6.78.

BBY' s 10-Year EV/EBIT Range
Min: 4.5   Max: 23.2
Current: 6.78

4.5
23.2

During the past 13 years, the highest EV/EBIT Ratio of Best Buy Co Inc was 23.20. The lowest was 4.50. And the median was 9.90.

BBY's EV/EBITis ranked higher than
96% of the 1641 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.90 vs. BBY: 6.78 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Best Buy Co Inc's enterprise value for the quarter that ended in Jan. 2015 was $10,110 Mil. Best Buy Co Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was $1,450 Mil. Best Buy Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2015 was 14.34%.


Definition

Best Buy Co Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=9828.500/1450
=6.78

Best Buy Co Inc's current Enterprise Value is $9,829 Mil.
Best Buy Co Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was 197 (Apr. 2014 ) + 238 (Jul. 2014 ) + 190 (Oct. 2014 ) + 825 (Jan. 2015 ) = $1,450 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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).

Best Buy Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2015 )
=1450/10109.744
=14.34 %

Best Buy Co Inc's Enterprise Value for the quarter that ended in Jan. 2015 was $10,110 Mil.
Best Buy Co Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was 197 (Apr. 2014 ) + 238 (Jul. 2014 ) + 190 (Oct. 2014 ) + 825 (Jan. 2015 ) = $1,450 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Best Buy Co Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14Jan15
ev2ebit 10.5213.969.597.907.477.085.879.276.056.97

Best Buy Co Inc Quarterly Data

Jul12Oct12Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebit 10.2211.7650.3217.2121.046.056.478.979.516.97
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