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Lowe's Companies Inc (NYSE:LOW)
EV/EBIT
16.10 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Lowe's Companies Inc's enterprise value is $72,029 Mil. Lowe's Companies Inc's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $4,474 Mil. Therefore, Lowe's Companies Inc's EV/EBIT ratio for today is 16.10.

LOW' s 10-Year EV/EBIT Range
Min: 6.6   Max: 16.3
Current: 16.1

6.6
16.3

During the past 13 years, the highest EV/EBIT Ratio of Lowe's Companies Inc was 16.30. The lowest was 6.60. And the median was 11.70.

LOW's EV/EBITis ranked higher than
74% of the 1357 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 17.88 vs. LOW: 16.10 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Lowe's Companies Inc's enterprise value for the quarter that ended in Oct. 2014 was $65,129 Mil. Lowe's Companies Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was $4,474 Mil. Lowe's Companies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 was 6.87%.


Definition

Lowe's Companies Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=72028.600/4474
=16.10

Lowe's Companies Inc's current Enterprise Value is $72,029 Mil.
Lowe's Companies Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 627 (Jan. 2014 ) + 1066 (Apr. 2014 ) + 1693 (Jul. 2014 ) + 1088 (Oct. 2014 ) = $4,474 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).

Lowe's Companies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Oct. 2014 )
=4474/65128.6797
=6.87 %

Lowe's Companies Inc's Enterprise Value for the quarter that ended in Oct. 2014 was $65,129 Mil.
Lowe's Companies Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 627 (Jan. 2014 ) + 1066 (Apr. 2014 ) + 1693 (Jul. 2014 ) + 1088 (Oct. 2014 ) = $4,474 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.

Lowe's Companies Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebit 12.6611.1410.599.528.5411.4410.9612.0913.9013.89

Lowe's Companies Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebit 11.7113.1113.9013.1213.4213.8613.8913.2613.0914.56
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