Ye Digital (TSE:2354) EBIT: 円659 Mil (TTM As of Feb. 2026)

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TSE:2354 Ye Digital Corp TSE:2354
71 GF Score
Price 円1,059.00
GF Value 円732.75
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Ye Digital EBIT?

Ye Digital TSE:2354 +8.28% 71 EBIT is 円659 Mil as of Feb. 2026. GuruFocus rates TSE:2354 with a GF Score™ of 71/100 and a GF Value™ of 円732.75 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Ye Digital's earnings before interest and taxes (EBIT) for the three months ended in Feb. 2026 was 円0 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2026 was 円659 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ye Digital's annualized ROC % for the quarter that ended in Feb. 2026 was 0.00%. Ye Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 0.00%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Ye Digital's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 4.69%.


Ye Digital  (TSE:2354) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Ye Digital's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=0 * ( 1 - 0% )/( (8760.413 + 9220.721)/ 2 )
=0/8990.567
=0.00 %

where

Invested Capital(Q: Nov. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=14074.623 - 1671.311 - ( 3642.899 - max(0, 4643.412 - 10498.656+3642.899))
=8760.413

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=14297.389 - 1671.611 - ( 3405.057 - max(0, 4511.102 - 10331.895+3405.057))
=9220.721

Note: The Operating Income data used here is four times the quarterly (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Ye Digital's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0/( ( (982.352 + max(2212.345, 0)) + (951.513 + max(81.519000000001, 0)) )/ 2 )
=0/( ( 3194.697 + 1033.032 )/ 2 )
=0/2113.8645
=0.00 %

where Working Capital is:

Working Capital(Q: Nov. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5546.885 + 539.774 + 769.098) - (1671.311 + 0 + 2972.101)
=2212.345

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3516.443 + 285.835 + 790.343) - (1671.611 + 0 + 2839.491)
=81.519000000001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Ye Digital's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Feb. 2026 )
=659.121/14055.183
=4.69 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ye Digital EBIT Related Terms


Ye Digital EBIT Historical Data

* Premium members only.

The historical data trend for Ye Digital's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ye Digital EBIT Chart

Ye Digital Annual Data
Trend Mar16 Mar17 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 842.97 910.00 1,488.91 1,408.10 1,628.45

Ye Digital Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Feb25 May25 Aug25 Nov25 Feb26 May26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 315.99 327.66 0.00 0.00 331.46

TSE:2354 vs IBM, ACN, FISV: EBIT Comparison

For the Information Technology Services subindustry, Ye Digital's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ye Digital EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Ye Digital's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Ye Digital's EV-to-EBIT falls into.


TSE:2354
71GF Score
Ye Digital Corp TSE:2354
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ye Digital EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円659 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円659 Mil mean?
Ye Digital (TSE:2354) has a EBIT of 円659 Mil as of Feb. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Ye Digital.
Is Ye Digital's EBIT too high?
Ye Digital's current EBIT is 円659 Mil. Overall, Ye Digital has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ye Digital's EBIT compare to IBM and ACN?
Ye Digital's EBIT of 円659 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Ye Digital. Ye Digital's current EBIT is 円659 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ye Digital stock overvalued right now?
Based on GuruFocus' analysis, Ye Digital (TSE:2354) is currently considered Significantly Overvalued. The stock's GF Value™ is 円732.75, compared to a current price of 円1,059.00 — trading 44.5% above its estimated fair value. The current EBIT is 円659 Mil. Ye Digital's overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Ye Digital (TSE:2354), the current EBIT is 円659 Mil as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ye Digital (TSE:2354) Overvalued in 2026?

Based on GuruFocus' analysis, Ye Digital stock appears to be overvalued. The current stock price of 円1,059.00 is trading 44.5% above its estimated GF Value™ of 円732.75. GuruFocus considers Ye Digital to be Significantly Overvalued.

Key valuation signals for TSE:2354:

  • EBIT: 円659 Mil
  • GF Value™: 円732.75 vs. price of 円1,059.00 (44.5% above fair value)
  • GF Score™: 71/100 with 4 warning signs

No single metric tells the full story. See the TSE:2354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ye Digital Business Description

Address 5-15 Higashi-Oji-machi, Yahata-Nishi-ku, Kitakyushu, Fukuoka, JPN, 806-0037
Ye Digital Corp is engaged in the solutions development for manufacturing industries like factory automation, and control applications for manufacturing machines. The service provided by the company include quick data visualization and analysis, consulting, and connectivity.
71GF Score

Get the complete analysis for TSE:2354

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,059.00
Price
円732.75
GF Value