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GuruFocus has detected 4 Warning Signs with Ulta Beauty Inc $ULTA.
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Ulta Beauty Inc (NAS:ULTA)
EV-to-EBIT
28.19 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Ulta Beauty Inc's enterprise value is $16,914 Mil. Ulta Beauty Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $600 Mil. Therefore, Ulta Beauty Inc's EV/EBIT ratio for today is 28.19.

ULTA' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.8   Max: 29.7
Current: 28.19

7.8
29.7

During the past 13 years, the highest EV/EBIT Ratio of Ulta Beauty Inc was 29.70. The lowest was 7.80. And the median was 20.30.

ULTA's EV-to-EBIT is ranked lower than
78% of the 634 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.93 vs. ULTA: 28.19 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Ulta Beauty Inc's enterprise value for the quarter that ended in Oct. 2016 was $14,922 Mil. Ulta Beauty Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $600 Mil. Ulta Beauty Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 was 4.02%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=16913.832/600.08
=28.19

Ulta Beauty Inc's current Enterprise Value is $16,914 Mil.
Ulta Beauty Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 169.486 (Jan. 2016 ) + 147.164 (Apr. 2016 ) + 143.769 (Jul. 2016 ) + 139.661 (Oct. 2016 ) = $600 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).

Ulta Beauty Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2016 )=EBIT (TTM)/Enterprise Value (Q: Oct. 2016 )
=600.08/14921.8408
=4.02 %

Ulta Beauty Inc's Enterprise Value for the quarter that ended in Oct. 2016 was $14,922 Mil.
Ulta Beauty Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 169.486 (Jan. 2016 ) + 147.164 (Apr. 2016 ) + 143.769 (Jul. 2016 ) + 139.661 (Oct. 2016 ) = $600 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.

Ulta Beauty Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
ev2ebit 0.0020.089.4816.5017.8222.8521.2215.5219.3221.80

Ulta Beauty Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebit 14.9619.0719.3220.9822.1922.6321.8023.2228.0024.87
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