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GuruFocus has detected 4 Warning Signs with TJX Companies Inc $TJX.
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TJX Companies Inc (NYSE:TJX)
EV-to-EBIT
13.19 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, TJX Companies Inc's enterprise value is $49,838 Mil. TJX Companies Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $3,779 Mil. Therefore, TJX Companies Inc's EV/EBIT ratio for today is 13.19.

TJX' s EV-to-EBIT Range Over the Past 10 Years
Min: 6.1   Max: 14.4
Current: 13.19

6.1
14.4

During the past 13 years, the highest EV/EBIT Ratio of TJX Companies Inc was 14.40. The lowest was 6.10. And the median was 11.10.

TJX's EV-to-EBIT is ranked higher than
56% of the 762 Companies
in the Global Apparel Stores industry.

( Industry Median: 15.04 vs. TJX: 13.19 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). TJX Companies Inc's enterprise value for the quarter that ended in Jan. 2017 was $48,006 Mil. TJX Companies Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $3,779 Mil. TJX Companies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was 7.87%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=49837.540/3779.159
=13.19

TJX Companies Inc's current Enterprise Value is $49,838 Mil.
TJX Companies Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 839.955 (Apr. 2016 ) + 929.138 (Jul. 2016 ) + 906.791 (Oct. 2016 ) + 1103.275 (Jan. 2017 ) = $3,779 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).

TJX Companies Inc'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 )
=3779.159/48005.95912
=7.87 %

TJX Companies Inc's Enterprise Value for the quarter that ended in Jan. 2017 was $48,006 Mil.
TJX Companies Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 839.955 (Apr. 2016 ) + 929.138 (Jul. 2016 ) + 906.791 (Oct. 2016 ) + 1103.275 (Jan. 2017 ) = $3,779 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.

TJX Companies Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebit 11.035.707.307.8810.0210.0811.6712.2212.5112.70

TJX Companies Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 12.1912.2211.8212.5713.1812.5113.1013.9312.6412.70
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