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GuruFocus has detected 4 Warning Signs with Watsco Inc $WSO.
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Watsco Inc (NYSE:WSO)
EV-to-EBIT
16.07 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Watsco Inc's enterprise value is $5,522 Mil. Watsco Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $344 Mil. Therefore, Watsco Inc's EV/EBIT ratio for today is 16.07.

WSO' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.3   Max: 25.5
Current: 16.06

8.3
25.5

During the past 13 years, the highest EV/EBIT Ratio of Watsco Inc was 25.50. The lowest was 8.30. And the median was 13.00.

WSO's EV-to-EBIT is ranked higher than
58% of the 2054 Companies
in the Global Electronics Distribution industry.

( Industry Median: 16.00 vs. WSO: 16.06 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Watsco Inc's enterprise value for the quarter that ended in Mar. 2017 was $5,563 Mil. Watsco Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $344 Mil. Watsco Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 6.18%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=5522.179/343.663
=16.07

Watsco Inc's current Enterprise Value is $5,522 Mil.
Watsco Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 117.59 (Jun. 2016 ) + 119.3 (Sep. 2016 ) + 58.074 (Dec. 2016 ) + 48.699 (Mar. 2017 ) = $344 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).

Watsco Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=343.663/5563.1988
=6.18 %

Watsco Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $5,563 Mil.
Watsco Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 117.59 (Jun. 2016 ) + 119.3 (Sep. 2016 ) + 58.074 (Dec. 2016 ) + 48.699 (Mar. 2017 ) = $344 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.

Watsco Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 9.6610.8220.8012.6511.9113.7916.3913.9915.8616.46

Watsco Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 13.9915.7515.3014.1115.8615.3316.5015.9416.4616.19
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