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GuruFocus has detected 6 Warning Signs with Sears Holdings Corp $SHLD.
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Sears Holdings Corp (NAS:SHLD)
EV-to-EBIT
-2.51 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Sears Holdings Corp's enterprise value is $4,990 Mil. Sears Holdings Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $-1,991 Mil. Therefore, Sears Holdings Corp's EV/EBIT ratio for today is -2.51.

SHLD' s EV-to-EBIT Range Over the Past 10 Years
Min: -10.5   Max: 71.7
Current: -2.51

-10.5
71.7

During the past 13 years, the highest EV/EBIT Ratio of Sears Holdings Corp was 71.70. The lowest was -10.50. And the median was 6.90.

SHLD's EV-to-EBIT is ranked lower than
99.99% of the 762 Companies
in the Global Department Stores industry.

( Industry Median: 15.04 vs. SHLD: -2.51 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Sears Holdings Corp's enterprise value for the quarter that ended in Jan. 2017 was $4,859 Mil. Sears Holdings Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $-1,991 Mil. Sears Holdings Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was -40.98%.


Definition

Sears Holdings Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4989.567/-1991
=-2.51

Sears Holdings Corp's current Enterprise Value is $4,990 Mil.
Sears Holdings Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was -367 (Apr. 2016 ) + -270 (Jul. 2016 ) + -624 (Oct. 2016 ) + -730 (Jan. 2017 ) = $-1,991 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).

Sears Holdings Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=-1991/4858.86
=-40.98 %

Sears Holdings Corp's Enterprise Value for the quarter that ended in Jan. 2017 was $4,859 Mil.
Sears Holdings Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was -367 (Apr. 2016 ) + -270 (Jul. 2016 ) + -624 (Oct. 2016 ) + -730 (Jan. 2017 ) = $-1,991 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.

Sears Holdings Corp Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebit 8.8018.9312.1510.53-4.10-9.37-9.46-5.06-4.45-2.44

Sears Holdings Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit -6.97-5.06-6.69-6.06-8.62-4.29-4.18-3.04-2.81-2.32
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