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Staples Inc (NAS:SPLS)
EV/EBIT
42.96 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Staples Inc's enterprise value is $10,702 Mil. Staples Inc's operating income for the trailing twelve months (TTM) ended in Apr. 2015 was $249 Mil. Therefore, Staples Inc's EV/EBIT ratio for today is 42.96.

SPLS' s 10-Year EV/EBIT Range
Min: 5.5   Max: 44.6
Current: 43.83

5.5
44.6

During the past 13 years, the highest EV/EBIT Ratio of Staples Inc was 44.60. The lowest was 5.50. And the median was 12.20.

SPLS's EV/EBITis ranked higher than
65% of the 1637 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.44 vs. SPLS: 43.83 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Staples Inc's enterprise value for the quarter that ended in Apr. 2015 was $10,776 Mil. Staples Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2015 was $249 Mil. Staples Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2015 was 2.31%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=10701.867/249.086
=42.96

Staples Inc's current Enterprise Value is $10,702 Mil.
Staples Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2015 was 19.362 (Jul. 2014 ) + 328.243 (Oct. 2014 ) + -196.519 (Jan. 2015 ) + 98 (Apr. 2015 ) = $249 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).

Staples Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Apr. 2015 )
=249.086/10776.0224
=2.31 %

Staples Inc's Enterprise Value for the quarter that ended in Apr. 2015 was $10,776 Mil.
Staples Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2015 was 19.362 (Jul. 2014 ) + 328.243 (Oct. 2014 ) + -196.519 (Jan. 2015 ) + 98 (Apr. 2015 ) = $249 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Staples Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ev2ebit 13.1611.9610.2610.1913.2110.586.7319.587.8236.81

Staples Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ev2ebit 19.5820.3228.049.667.828.139.2710.0336.810.00
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