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Lowe's Companies Inc (NYSE:LOW)
EV/EBIT
16.06 (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 $76,958 Mil. Lowe's Companies Inc's operating income for the trailing twelve months (TTM) ended in Jan. 2015 was $4,792 Mil. Therefore, Lowe's Companies Inc's EV/EBIT ratio for today is 16.06.

LOW' s 10-Year EV/EBIT Range
Min: 6.6   Max: 17.4
Current: 15.9

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 higher than
77% of the 1637 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 20.44 vs. LOW: 15.90 )

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 Jan. 2015 was $75,826 Mil. Lowe's Companies Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was $4,792 Mil. Lowe's Companies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2015 was 6.32%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=76957.657/4792
=16.06

Lowe's Companies Inc's current Enterprise Value is $76,958 Mil.
Lowe's Companies Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was 1066 (Apr. 2014 ) + 1819 (Jul. 2014 ) + 1088 (Oct. 2014 ) + 819 (Jan. 2015 ) = $4,792 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 Jan. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2015 )
=4792/75825.6
=6.32 %

Lowe's Companies Inc's Enterprise Value for the quarter that ended in Jan. 2015 was $75,826 Mil.
Lowe's Companies Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was 1066 (Apr. 2014 ) + 1819 (Jul. 2014 ) + 1088 (Oct. 2014 ) + 819 (Jan. 2015 ) = $4,792 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ev2ebit 11.1710.599.528.5411.4410.9611.7714.2713.8915.82

Lowe's Companies Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebit 11.4514.2713.8514.1114.9813.8913.2612.6714.1915.82
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