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PetSmart Inc (NAS:PETM)
EV/EBIT
12.14 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, PetSmart Inc's enterprise value is $8,525 Mil. PetSmart Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2014 was $702 Mil. Therefore, PetSmart Inc's EV/EBIT ratio for today is 12.14.

PETM' s 10-Year EV/EBIT Range
Min: 6.9   Max: 23.3
Current: 12.14

6.9
23.3

During the past 13 years, the highest EV/EBIT Ratio of PetSmart Inc was 23.30. The lowest was 6.90. And the median was 11.50.

PETM's EV/EBITis ranked higher than
63% of the 716 Companies
in the Global Specialty Retail industry.

( Industry Median: 15.25 vs. PETM: 12.14 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). PetSmart Inc's enterprise value for the quarter that ended in Oct. 2014 was $7,468 Mil. PetSmart Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2014 was $702 Mil. PetSmart Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 was 9.40%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=8525.286/702.305
=12.14

PetSmart Inc's current Enterprise Value is $8,525 Mil.
PetSmart Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2014 was 216.581 (Jan. 2014 ) + 171.758 (Apr. 2014 ) + 162.952 (Jul. 2014 ) + 151.014 (Oct. 2014 ) = $702 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).

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

Earnings Yield (Joel Greenblatt) (Q: Oct. 2014 )=EBIT (TTM)/Enterprise Value (Q: Oct. 2014 )
=702.305/7468.3995
=9.40 %

PetSmart Inc's Enterprise Value for the quarter that ended in Oct. 2014 was $7,468 Mil.
PetSmart Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2014 was 216.581 (Jan. 2014 ) + 171.758 (Apr. 2014 ) + 162.952 (Jul. 2014 ) + 151.014 (Oct. 2014 ) = $702 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.

PetSmart Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ev2ebit 11.0613.307.617.589.0411.3611.9410.769.390.00

PetSmart Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebit 12.1810.7610.8411.3611.039.399.899.9010.630.00
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