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GuruFocus has detected 4 Warning Signs with FirstCash Inc $FCFS.
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FirstCash Inc (NYSE:FCFS)
EV-to-EBIT
22.47 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, FirstCash Inc's enterprise value is $2,557 Mil. FirstCash Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $114 Mil. Therefore, FirstCash Inc's EV/EBIT ratio for today is 22.47.

FCFS' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.4   Max: 27
Current: 22.47

5.4
27

During the past 13 years, the highest EV/EBIT Ratio of FirstCash Inc was 27.00. The lowest was 5.40. And the median was 12.40.

FCFS's EV-to-EBIT is ranked lower than
58% of the 420 Companies
in the Global Credit Services industry.

( Industry Median: 18.27 vs. FCFS: 22.47 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). FirstCash Inc's enterprise value for the quarter that ended in Dec. 2016 was $2,647 Mil. FirstCash Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $114 Mil. FirstCash Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 4.30%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2556.540/113.767
=22.47

FirstCash Inc's current Enterprise Value is $2,557 Mil.
FirstCash Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 24.121 (Mar. 2016 ) + 21.572 (Jun. 2016 ) + 5.496 (Sep. 2016 ) + 62.578 (Dec. 2016 ) = $114 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).

FirstCash Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=113.767/2646.56
=4.30 %

FirstCash Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $2,647 Mil.
FirstCash Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 24.121 (Mar. 2016 ) + 21.572 (Jun. 2016 ) + 5.496 (Sep. 2016 ) + 62.578 (Dec. 2016 ) = $114 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.

FirstCash Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 8.7611.769.6211.219.1812.1915.4413.3411.7023.26

FirstCash Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 13.9113.3411.3011.7011.5611.7014.7816.7932.4723.26
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