Switch to:
Family Dollar Stores, Inc. (NYSE:FDO)
EV/EBIT
10.60 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Family Dollar Stores, Inc.'s enterprise value is $7,094 Mil. Family Dollar Stores, Inc.'s operating income for the trailing twelve months (TTM) ended in Feb. 2014 was $605 Mil. Therefore, Family Dollar Stores, Inc.'s EV/EBIT ratio for today is 10.60.

FDO' s 10-Year EV/EBIT Range
Min: 6.1   Max: 18.9
Current: 10.6

6.1
18.9

During the past 13 years, the highest EV/EBIT Ratio of Family Dollar Stores, Inc. was 18.90. The lowest was 6.10. And the median was 11.10.

FDO's EV/EBITis ranked higher than
77% of the 457 Companies
in the Global Discount Stores industry.

( Industry Median: 13.48 vs. FDO: 10.60 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Family Dollar Stores, Inc.'s enterprise value for the quarter that ended in Feb. 2014 was $8,257 Mil. Family Dollar Stores, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Feb. 2014 was $605 Mil. Family Dollar Stores, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2014 was 0.00%.


Definition

Family Dollar Stores, Inc.'s EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=7093.969/604.587
=11.73

Family Dollar Stores, Inc.'s current Enterprise Value is $7,094 Mil.
Family Dollar Stores, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Feb. 2014 was 188.42 (May. 2013 ) + 155.591 (Aug. 2013 ) + 120.319 (Nov. 2013 ) + 140.257 (Feb. 2014 ) = $605 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).

Family Dollar Stores, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Feb. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Feb. 2014 )
=604.587/8257.44
=7.32 %

Family Dollar Stores, Inc.'s Enterprise Value for the quarter that ended in Feb. 2014 was $8,257 Mil.
Family Dollar Stores, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Feb. 2014 was 188.42 (May. 2013 ) + 155.591 (Aug. 2013 ) + 120.319 (Nov. 2013 ) + 140.257 (Feb. 2014 ) = $605 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.

Family Dollar Stores, Inc. Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev2ebit 10.209.1712.3310.499.788.779.2610.3111.7312.45

Family Dollar Stores, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebit 11.5310.1212.3911.7313.3810.8411.5712.4512.480.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide