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Zale Corp (NYSE:ZLC)
EV/EBIT
29.95 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Zale Corp's enterprise value is $1,328 Mil. Zale Corp's operating income for the trailing twelve months (TTM) ended in Jan. 2014 was $44 Mil. Therefore, Zale Corp's EV/EBIT ratio for today is 29.95.

ZLC' s 10-Year EV/EBIT Range
Min: 8.1   Max: 178
Current: 29.95

8.1
178

During the past 13 years, the highest EV/EBIT Ratio of Zale Corp was 178.00. The lowest was 8.10. And the median was 15.60.

ZLC's EV/EBITis ranked higher than
51% of the 945 Companies
in the Global Luxury Goods industry.

( Industry Median: 13.41 vs. ZLC: 29.95 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Zale Corp's enterprise value for the quarter that ended in Jan. 2014 was $921 Mil. Zale Corp's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was $44 Mil. Zale Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 was 4.81%.


Definition

Zale Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=1327.978/44.338
=29.95

Zale Corp's current Enterprise Value is $1,328 Mil.
Zale Corp's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 9.928 (Apr. 2013 ) + -3.08 (Jul. 2013 ) + -22.032 (Oct. 2013 ) + 59.522 (Jan. 2014 ) = $44 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).

Zale Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2014 )
=44.338/921.2784
=4.81 %

Zale Corp's Enterprise Value for the quarter that ended in Jan. 2014 was $921 Mil.
Zale Corp's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 9.928 (Apr. 2013 ) + -3.08 (Jul. 2013 ) + -22.032 (Oct. 2013 ) + 59.522 (Jan. 2014 ) = $44 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.

Zale Corp Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
ev2ebit 8.7610.2117.1911.940.000.000.000.0027.4919.82

Zale Corp Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebit 0.000.00175.6227.4939.8823.0619.2419.8227.8220.78
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