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Five Star Quality Care, Inc. (NYSE:FVE)
EV/EBIT
12.50 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Five Star Quality Care, Inc.'s enterprise value is $276 Mil. Five Star Quality Care, Inc.'s operating income for the trailing twelve months (TTM) ended in Sep. 2013 was $17 Mil. Therefore, Five Star Quality Care, Inc.'s EV/EBIT ratio for today is 12.50.

FVE' s 10-Year EV/EBIT Range
Min: 0   Max: 0
Current: 12.5

FVE's EV/EBITis ranked higher than
77% of the 205 Companies
in the Global Long-Term Care Facilities industry.

( Industry Median: 17.82 vs. FVE: 12.50 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Five Star Quality Care, Inc.'s enterprise value for the quarter that ended in Sep. 2013 was $250 Mil. Five Star Quality Care, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was $17 Mil. Five Star Quality Care, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2013 was 6.74%.


Definition

Five Star Quality Care, Inc.'s EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=275.500/16.821
=16.38

Five Star Quality Care, Inc.'s current Enterprise Value is $276 Mil.
Five Star Quality Care, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was 5.541 (Dec. 2012 ) + 2.405 (Mar. 2013 ) + 5.739 (Jun. 2013 ) + 3.136 (Sep. 2013 ) = $17 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).

Five Star Quality Care, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2013 )
=16.821/249.5559
=6.74 %

Five Star Quality Care, Inc.'s Enterprise Value for the quarter that ended in Sep. 2013 was $250 Mil.
Five Star Quality Care, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was 5.541 (Dec. 2012 ) + 2.405 (Mar. 2013 ) + 5.739 (Jun. 2013 ) + 3.136 (Sep. 2013 ) = $17 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.

Five Star Quality Care, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
ev2ebit 0.0018.980.000.0012.589.9414.3510.3912.4512.65

Five Star Quality Care, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
ev2ebit 10.347.3612.4516.9515.5118.9012.6517.1715.6914.84
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