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GuruFocus has detected 4 Warning Signs with Weight Watchers International Inc $WTW.
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Weight Watchers International Inc (NYSE:WTW)
EV-to-EBIT
14.36 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Weight Watchers International Inc's enterprise value is $2,861 Mil. Weight Watchers International Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $199 Mil. Therefore, Weight Watchers International Inc's EV/EBIT ratio for today is 14.36.

WTW' s EV-to-EBIT Range Over the Past 10 Years
Min: 2.5   Max: 19.8
Current: 14.37

2.5
19.8

During the past 13 years, the highest EV/EBIT Ratio of Weight Watchers International Inc was 19.80. The lowest was 2.50. And the median was 10.85.

WTW's EV-to-EBIT is ranked higher than
57% of the 67 Companies
in the Global Personal Services industry.

( Industry Median: 15.87 vs. WTW: 14.37 )

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. 2016 was $2,626 Mil. Weight Watchers International Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $199 Mil. Weight Watchers International Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 7.59%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2861.273/199.287
=14.36

Weight Watchers International Inc's current Enterprise Value is $2,861 Mil.
Weight Watchers International Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 13.622 (Mar. 2016 ) + 73.124 (Jun. 2016 ) + 66.938 (Sep. 2016 ) + 45.603 (Dec. 2016 ) = $199 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).

Weight Watchers International Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=199.287/2625.6415
=7.59 %

Weight Watchers International Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $2,626 Mil.
Weight Watchers International Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 13.622 (Mar. 2016 ) + 73.124 (Jun. 2016 ) + 66.938 (Sep. 2016 ) + 45.603 (Dec. 2016 ) = $199 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.

Weight Watchers International Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 11.923.2310.2410.569.3010.369.3511.3019.2613.18

Weight Watchers International Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 10.5411.309.2510.0711.7519.2616.9316.2815.1613.18
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