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GuruFocus has detected 6 Warning Signs with Genuine Parts Co $GPC.
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Genuine Parts Co (NYSE:GPC)
EV-to-EBIT
13.34 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Genuine Parts Co's enterprise value is $14,959 Mil. Genuine Parts Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,121 Mil. Therefore, Genuine Parts Co's EV/EBIT ratio for today is 13.34.

GPC' s EV-to-EBIT Range Over the Past 10 Years
Min: 6   Max: 15.1
Current: 13.92

6
15.1

During the past 13 years, the highest EV/EBIT Ratio of Genuine Parts Co was 15.10. The lowest was 6.00. And the median was 10.60.

GPC's EV-to-EBIT is ranked higher than
53% of the 634 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.93 vs. GPC: 13.92 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Genuine Parts Co's enterprise value for the quarter that ended in Sep. 2016 was $15,504 Mil. Genuine Parts Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,121 Mil. Genuine Parts Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 7.23%.


Definition

Genuine Parts Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=14958.729/1121.324
=13.34

Genuine Parts Co's current Enterprise Value is $14,959 Mil.
Genuine Parts Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 283.27 (Dec. 2015 ) + 246.645 (Mar. 2016 ) + 300.052 (Jun. 2016 ) + 291.357 (Sep. 2016 ) = $1,121 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).

Genuine Parts Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=1121.324/15503.838
=7.23 %

Genuine Parts Co's Enterprise Value for the quarter that ended in Sep. 2016 was $15,504 Mil.
Genuine Parts Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 283.27 (Dec. 2015 ) + 246.645 (Mar. 2016 ) + 300.052 (Jun. 2016 ) + 291.357 (Sep. 2016 ) = $1,121 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.

Genuine Parts Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 9.638.109.2510.2710.469.5712.4814.8411.6313.87

Genuine Parts Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 12.6614.8412.9812.3611.2211.6313.4813.8313.8313.87
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