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GuruFocus has detected 2 Warning Signs with JC Penney Co Inc $JCP.
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JC Penney Co Inc (NYSE:JCP)
EV-to-EBIT
14.68 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, JC Penney Co Inc's enterprise value is $5,798 Mil. JC Penney Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $395 Mil. Therefore, JC Penney Co Inc's EV/EBIT ratio for today is 14.68.

JCP' s EV-to-EBIT Range Over the Past 10 Years
Min: -5436.8   Max: 913.1
Current: 14.68

-5436.8
913.1

During the past 13 years, the highest EV/EBIT Ratio of JC Penney Co Inc was 913.10. The lowest was -5436.80. And the median was 7.25.

JCP's EV-to-EBIT is ranked higher than
54% of the 1063 Companies
in the Global Department Stores industry.

( Industry Median: 15.73 vs. JCP: 14.68 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). JC Penney Co Inc's enterprise value for the quarter that ended in Jan. 2017 was $6,030 Mil. JC Penney Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $395 Mil. JC Penney Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was 6.55%.


Definition

JC Penney Co Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=5797.630/395
=14.68

JC Penney Co Inc's current Enterprise Value is $5,798 Mil.
JC Penney Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 22 (Apr. 2016 ) + 76 (Jul. 2016 ) + 23 (Oct. 2016 ) + 274 (Jan. 2017 ) = $395 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).

JC Penney Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=395/6030.45
=6.55 %

JC Penney Co Inc's Enterprise Value for the quarter that ended in Jan. 2017 was $6,030 Mil.
JC Penney Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 22 (Apr. 2016 ) + 76 (Jul. 2016 ) + 23 (Oct. 2016 ) + 274 (Jan. 2017 ) = $395 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.

JC Penney Co Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebit 6.264.309.419.95-5,282.82-4.97-4.74-24.49-68.8515.27

JC Penney Co Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit -21.04-24.49-128.39855.22162.10-68.85-341.42113.5570.4615.27
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