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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Lowe's Companies Inc's enterprise value is $74,916 Mil. Lowe's Companies Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was $5,119 Mil. Therefore, Lowe's Companies Inc's EV/EBIT ratio for today is 14.63.

LOW' s 10-Year EV/EBIT Range
Min: 6.6   Max: 17.4
Current: 14.63

6.6
17.4

During the past 13 years, the highest EV/EBIT Ratio of Lowe's Companies Inc was 17.40. The lowest was 6.60. And the median was 11.50.

LOW's EV/EBITis ranked lower than
51% of the 714 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 14.67 vs. LOW: 14.63 )

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 Jul. 2015 was $74,636 Mil. Lowe's Companies Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was $5,119 Mil. Lowe's Companies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2015 was 6.86%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=74915.990/5119
=14.63

Lowe's Companies Inc's current Enterprise Value is $74,916 Mil.
Lowe's Companies Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was 1089 (Oct. 2014 ) + 824 (Jan. 2015 ) + 1232 (Apr. 2015 ) + 1974 (Jul. 2015 ) = $5,119 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 Jul. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jul. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jul. 2015 )
=5119/74636.08
=6.86 %

Lowe's Companies Inc's Enterprise Value for the quarter that ended in Jul. 2015 was $74,636 Mil.
Lowe's Companies Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was 1089 (Oct. 2014 ) + 824 (Jan. 2015 ) + 1232 (Apr. 2015 ) + 1974 (Jul. 2015 ) = $5,119 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Lowe's Companies Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ev2ebit 11.2110.579.418.4511.4110.9112.0914.1213.8815.80

Lowe's Companies Inc Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
ev2ebit 13.7113.9714.8513.8813.2512.7014.1815.8015.180.00
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