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GuruFocus has detected 8 Warning Signs with Guess? Inc $GES.
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Guess? Inc (NYSE:GES)
EV-to-EBIT
7.69 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Guess? Inc's enterprise value is $772 Mil. Guess? Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $100 Mil. Therefore, Guess? Inc's EV/EBIT ratio for today is 7.69.

GES' s EV-to-EBIT Range Over the Past 10 Years
Min: 2.4   Max: 18.2
Current: 7.71

2.4
18.2

During the past 13 years, the highest EV/EBIT Ratio of Guess? Inc was 18.20. The lowest was 2.40. And the median was 8.70.

GES's EV-to-EBIT is ranked higher than
82% of the 634 Companies
in the Global Apparel Stores industry.

( Industry Median: 14.93 vs. GES: 7.71 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Guess? Inc's enterprise value for the quarter that ended in Oct. 2016 was $825 Mil. Guess? Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $100 Mil. Guess? Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 was 12.17%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=772.292/100.377
=7.69

Guess? Inc's current Enterprise Value is $772 Mil.
Guess? Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 70.475 (Jan. 2016 ) + -29.425 (Apr. 2016 ) + 43.218 (Jul. 2016 ) + 16.109 (Oct. 2016 ) = $100 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).

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

Earnings Yield (Joel Greenblatt) (Q: Oct. 2016 )=EBIT (TTM)/Enterprise Value (Q: Oct. 2016 )
=100.377/824.862
=12.17 %

Guess? Inc's Enterprise Value for the quarter that ended in Oct. 2016 was $825 Mil.
Guess? Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 70.475 (Jan. 2016 ) + -29.425 (Apr. 2016 ) + 43.218 (Jul. 2016 ) + 16.109 (Oct. 2016 ) = $100 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.

Guess? Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
ev2ebit 0.0010.493.798.808.365.547.098.107.868.73

Guess? Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebit 9.409.097.867.239.469.918.7312.558.188.22
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