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GuruFocus has detected 3 Warning Signs with Best Buy Co Inc $BBY.
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Best Buy Co Inc (NYSE:BBY)
EV-to-EBIT
8.73 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Best Buy Co Inc's enterprise value is $15,876 Mil. Best Buy Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $1,819 Mil. Therefore, Best Buy Co Inc's EV/EBIT ratio for today is 8.73.

BBY' s EV-to-EBIT Range Over the Past 10 Years
Min: -372.6   Max: 133.7
Current: 8.73

-372.6
133.7

During the past 13 years, the highest EV/EBIT Ratio of Best Buy Co Inc was 133.70. The lowest was -372.60. And the median was 7.80.

BBY's EV-to-EBIT is ranked higher than
91% of the 1045 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.87 vs. BBY: 8.73 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Best Buy Co Inc's enterprise value for the quarter that ended in Apr. 2017 was $13,675 Mil. Best Buy Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $1,819 Mil. Best Buy Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2017 was 13.30%.


Definition

Best Buy Co Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=15875.980/1819
=8.73

Best Buy Co Inc's current Enterprise Value is $15,876 Mil.
Best Buy Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 297 (Jul. 2016 ) + 320 (Oct. 2016 ) + 891 (Jan. 2017 ) + 311 (Apr. 2017 ) = $1,819 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).

Best Buy Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2017 )=EBIT (TTM)/Enterprise Value (Q: Apr. 2017 )
=1819/13674.9121
=13.30 %

Best Buy Co Inc's Enterprise Value for the quarter that ended in Apr. 2017 was $13,675 Mil.
Best Buy Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 297 (Jul. 2016 ) + 320 (Oct. 2016 ) + 891 (Jan. 2017 ) + 311 (Apr. 2017 ) = $1,819 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.

Best Buy Co Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Jan13Jan14Jan15Jan16Jan17
ev2ebit 7.437.786.916.438.55100.375.836.845.395.98

Best Buy Co Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev2ebit 6.847.366.537.165.395.205.115.905.987.73
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