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Weight Watchers International, Inc. (NYSE:WTW)
EV/EBIT
7.50 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Weight Watchers International, Inc.'s enterprise value is $3,358 Mil. Weight Watchers International, Inc.'s operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $461 Mil. Therefore, Weight Watchers International, Inc.'s EV/EBIT ratio for today is 7.50.

WTW' s 10-Year EV/EBIT Range
Min: 7   Max: 21.9
Current: 7.5

7
21.9

During the past 13 years, the highest EV/EBIT Ratio of Weight Watchers International, Inc. was 21.90. The lowest was 7.00. And the median was 12.20.

WTW's EV/EBITis ranked higher than
79% of the 75 Companies
in the Global Personal Services industry.

( Industry Median: 15.67 vs. WTW: 7.50 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Weight Watchers International, Inc.'s enterprise value for the quarter that ended in Dec. 2013 was $4,071 Mil. Weight Watchers International, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $461 Mil. Weight Watchers International, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 11.33%.


Definition

Weight Watchers International, Inc.'s EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=3358.342/460.757
=7.29

Weight Watchers International, Inc.'s current Enterprise Value is $3,358 Mil.
Weight Watchers International, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 103.119 (Mar. 2013 ) + 153.976 (Jun. 2013 ) + 124.52 (Sep. 2013 ) + 79.142 (Dec. 2013 ) = $461 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).

Weight Watchers International, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=460.757/4070.695
=11.32 %

Weight Watchers International, Inc.'s Enterprise Value for the quarter that ended in Dec. 2013 was $4,071 Mil.
Weight Watchers International, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 103.119 (Mar. 2013 ) + 153.976 (Jun. 2013 ) + 124.52 (Sep. 2013 ) + 79.142 (Dec. 2013 ) = $461 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.

Weight Watchers International, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 15.3319.2015.6012.019.0910.2510.489.2410.298.83

Weight Watchers International, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 10.069.2413.0310.3010.4410.299.069.518.568.83
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