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GuruFocus has detected 6 Warning Signs with Pier 1 Imports Inc $PIR.
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Pier 1 Imports Inc (NYSE:PIR)
EV-to-EBIT
16.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Pier 1 Imports Inc's enterprise value is $736 Mil. Pier 1 Imports Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $45 Mil. Therefore, Pier 1 Imports Inc's EV/EBIT ratio for today is 16.30.

PIR' s EV-to-EBIT Range Over the Past 10 Years
Min: -77.4   Max: 23.8
Current: 16.3

-77.4
23.8

During the past 13 years, the highest EV/EBIT Ratio of Pier 1 Imports Inc was 23.80. The lowest was -77.40. And the median was 9.00.

PIR's EV-to-EBIT is ranked higher than
50% of the 1063 Companies
in the Global Specialty Retail industry.

( Industry Median: 15.73 vs. PIR: 16.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Pier 1 Imports Inc's enterprise value for the quarter that ended in Nov. 2016 was $604 Mil. Pier 1 Imports Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $45 Mil. Pier 1 Imports Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 was 7.48%.


Definition

Pier 1 Imports Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=736.337/45.167
=16.30

Pier 1 Imports Inc's current Enterprise Value is $736 Mil.
Pier 1 Imports Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 33.384 (Feb. 2016 ) + -7.027 (May. 2016 ) + -3.881 (Aug. 2016 ) + 22.691 (Nov. 2016 ) = $45 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).

Pier 1 Imports Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Nov. 2016 )=EBIT (TTM)/Enterprise Value (Q: Nov. 2016 )
=45.167/604.1919
=7.48 %

Pier 1 Imports Inc's Enterprise Value for the quarter that ended in Nov. 2016 was $604 Mil.
Pier 1 Imports Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 33.384 (Feb. 2016 ) + -7.027 (May. 2016 ) + -3.881 (Aug. 2016 ) + 22.691 (Nov. 2016 ) = $45 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.

Pier 1 Imports Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev2ebit -2.89-7.16-0.419.938.199.7510.6710.319.096.62

Pier 1 Imports Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ev2ebit 10.279.849.0910.5110.127.766.629.9813.3813.38
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