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Cato Corporation (NYSE:CATO)
EV/EBIT
6.10 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Cato Corporation's enterprise value is $553.7 Mil. Cato Corporation's operating income for the trailing twelve months (TTM) ended in Jan. 2014 was $81.8 Mil. Therefore, Cato Corporation's EV/EBIT ratio for today is 6.10.

CATO' s 10-Year EV/EBIT Range
Min: 3.9   Max: 11.5
Current: 6.1

3.9
11.5

During the past 13 years, the highest EV/EBIT Ratio of Cato Corporation was 11.50. The lowest was 3.90. And the median was 7.20.

CATO's EV/EBITis ranked higher than
89% of the 965 Companies
in the Global Apparel Stores industry.

( Industry Median: 13.30 vs. CATO: 6.10 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cato Corporation's enterprise value for the quarter that ended in Jan. 2014 was $577.0 Mil. Cato Corporation's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was $81.8 Mil. Cato Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 was 0.00%.


Definition

Cato Corporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=553.651/81.824
=6.77

Cato Corporation's current Enterprise Value is $553.7 Mil.
Cato Corporation's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 47.959 (Apr. 2013 ) + 23.097 (Jul. 2013 ) + 5.765 (Oct. 2013 ) + 5.003 (Jan. 2014 ) = $81.8 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).

Cato Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2014 )
=81.824/576.9954
=14.18 %

Cato Corporation's Enterprise Value for the quarter that ended in Jan. 2014 was $577.0 Mil.
Cato Corporation's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 47.959 (Apr. 2013 ) + 23.097 (Jul. 2013 ) + 5.765 (Oct. 2013 ) + 5.003 (Jan. 2014 ) = $81.8 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.

Cato Corporation Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebit 10.408.598.418.935.606.295.415.556.430.00

Cato Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebit 5.075.555.275.395.846.435.086.467.220.00
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