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GuruFocus has detected 4 Warning Signs with PS Business Parks Inc $PSB.
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PS Business Parks Inc (NYSE:PSB)
EV-to-EBIT
26.78 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, PS Business Parks Inc's enterprise value is $4,034.1 Mil. PS Business Parks Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $150.6 Mil. Therefore, PS Business Parks Inc's EV/EBIT ratio for today is 26.78.

PSB' s EV-to-EBIT Range Over the Past 10 Years
Min: 12.4   Max: 33.1
Current: 26.77

12.4
33.1

During the past 13 years, the highest EV/EBIT Ratio of PS Business Parks Inc was 33.10. The lowest was 12.40. And the median was 25.95.

PSB's EV-to-EBIT is ranked lower than
64% of the 822 Companies
in the Global REIT - Diversified industry.

( Industry Median: 20.61 vs. PSB: 26.77 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). PS Business Parks Inc's enterprise value for the quarter that ended in Dec. 2016 was $4,108.6 Mil. PS Business Parks Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $150.6 Mil. PS Business Parks Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 3.67%.


Definition

PS Business Parks Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4034.054/150.648
=26.78

PS Business Parks Inc's current Enterprise Value is $4,034.1 Mil.
PS Business Parks Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 35.67 (Mar. 2016 ) + 36.085 (Jun. 2016 ) + 39.149 (Sep. 2016 ) + 39.744 (Dec. 2016 ) = $150.6 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).

PS Business Parks Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=150.648/4108.5984
=3.67 %

PS Business Parks Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $4,108.6 Mil.
PS Business Parks Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 35.67 (Mar. 2016 ) + 36.085 (Jun. 2016 ) + 39.149 (Sep. 2016 ) + 39.744 (Dec. 2016 ) = $150.6 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.

PS Business Parks Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 25.8121.4020.4323.4827.0126.8526.1715.7121.8427.27

PS Business Parks Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 25.1415.7115.1313.7213.0921.8425.2525.6228.8927.27
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