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GuruFocus has detected 4 Warning Signs with Steelcase Inc $SCS.
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Steelcase Inc (NYSE:SCS)
EV-to-EBIT
10.29 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Steelcase Inc's enterprise value is $1,991 Mil. Steelcase Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $194 Mil. Therefore, Steelcase Inc's EV/EBIT ratio for today is 10.29.

SCS' s EV-to-EBIT Range Over the Past 10 Years
Min: -282.8   Max: 183.8
Current: 10.29

-282.8
183.8

During the past 13 years, the highest EV/EBIT Ratio of Steelcase Inc was 183.80. The lowest was -282.80. And the median was 11.80.

SCS's EV-to-EBIT is ranked higher than
70% of the 1371 Companies
in the Global Business Equipment industry.

( Industry Median: 15.77 vs. SCS: 10.29 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Steelcase Inc's enterprise value for the quarter that ended in Nov. 2016 was $1,886 Mil. Steelcase Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $194 Mil. Steelcase Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 was 10.26%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=1991.422/193.5
=10.29

Steelcase Inc's current Enterprise Value is $1,991 Mil.
Steelcase Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 34.5 (Feb. 2016 ) + 35.9 (May. 2016 ) + 64 (Aug. 2016 ) + 59.1 (Nov. 2016 ) = $194 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).

Steelcase 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 )
=193.5/1885.826
=10.26 %

Steelcase Inc's Enterprise Value for the quarter that ended in Nov. 2016 was $1,886 Mil.
Steelcase Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 34.5 (Feb. 2016 ) + 35.9 (May. 2016 ) + 64 (Aug. 2016 ) + 59.1 (Nov. 2016 ) = $194 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.

Steelcase Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev2ebit 17.778.5971.37-77.1418.9211.2524.8810.8714.947.92

Steelcase Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ev2ebit 10.3813.1414.9414.8214.2212.767.9210.659.659.75
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