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The CatoCATO +2.70%59 EV-to-EBIT is -72.58 as of Aug. 03, 2026. GuruFocus rates CATO with a GF Score™ of 59/100 and a GF Value™ of $4.17 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 879 Retail - Cyclical companies, The Cato ranks worse than 113765.53% on this metric.
This is a more accurate valuation of companies' operation because it considers 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.
The Cato's Enterprise Value for the quarter that ended in Apr. 2026 was $121.3 Mil.
The Cato's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.8 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.
The Cato EV-to-EBIT Related Terms
The Cato EV-to-EBIT Historical Data
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The historical data trend for The Cato's EV-to-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.
For the Apparel Retail subindustry, The Cato'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.
The Cato EV-to-EBIT vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where The Cato's EV-to-EBIT falls into.
The Cato's current Enterprise Value is $132.3 Mil.
The Cato's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.8 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.
The Cato (CATO) has a EV-to-EBIT of -72.58 as of Aug. 03, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on The Cato and its competitors. According to the industry distribution chart, The Cato ranks #999999 out of 879 companies in the Retail - Cyclical industry.
Is The Cato's EV-to-EBIT too high?
The Cato's current EV-to-EBIT is -72.58. Based on the distribution chart, The Cato ranks #999999 out of 879 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, The Cato has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's EV-to-EBIT compare to LVLU and KMFG?
According to the Retail - Cyclical industry distribution chart, The Cato ranks #999999 out of 879 companies for EV-to-EBIT. This places The Cato in the lower half of its industry. The industry median EV-to-EBIT is 13.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Retail - Cyclical company?
The median EV-to-EBIT among Retail - Cyclical companies is 13.63, based on 879 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on The Cato and its competitors. For the Retail - Cyclical industry, the median EV-to-EBIT is 13.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Cato's current EV-to-EBIT is -72.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cato stock overvalued right now?
Based on GuruFocus' analysis, The Cato (CATO) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.17, compared to a current price of $3.42 — trading 18% below its estimated fair value. The current EV-to-EBIT is -72.58. The Cato's overall GF Score™ is 59/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For The Cato (CATO), the current EV-to-EBIT is -72.58 as of Aug. 03, 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 The Cato (CATO) Overvalued in 2026?
Based on GuruFocus' analysis, The Cato stock appears to be undervalued.
The current stock price of $3.42 is trading 18% below its estimated GF Value™ of $4.17.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
EV-to-EBIT: -72.58
GF Value™: $4.17 vs. price of $3.42 (18% below fair value)
No single metric tells the full story. See the CATO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Cato Corp seeks to offer quality fashion apparel and accessories at low prices every day, in junior/missy and plus sizes. The Cato concept's stores and e-commerce website feature a broad assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, and handbags. Management believes the Company's success is dependent upon its ability to differentiate its stores from department stores, mass merchandise discount stores, and competing specialty stores. The key elements of the Company's business are: Merchandise Assortment, Value Pricing, Strip Shopping Center Location, Customer Service, Credit and Layaway Programs.
59GF Score
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