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GuruFocus has detected 6 Warning Signs with Brady Corp $BRC.
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Brady Corp (NYSE:BRC)
EV-to-EBIT
14.74 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Brady Corp's enterprise value is $1,895 Mil. Brady Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $129 Mil. Therefore, Brady Corp's EV/EBIT ratio for today is 14.74.

BRC' s EV-to-EBIT Range Over the Past 10 Years
Min: -45.3   Max: 38.9
Current: 14.74

-45.3
38.9

During the past 13 years, the highest EV/EBIT Ratio of Brady Corp was 38.90. The lowest was -45.30. And the median was 12.90.

BRC's EV-to-EBIT is ranked lower than
51% of the 255 Companies
in the Global Security & Protection Services industry.

( Industry Median: 15.52 vs. BRC: 14.74 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Brady Corp's enterprise value for the quarter that ended in Jan. 2017 was $1,896 Mil. Brady Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $129 Mil. Brady Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was 6.78%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=1894.627/128.506
=14.74

Brady Corp's current Enterprise Value is $1,895 Mil.
Brady Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 31.505 (Apr. 2016 ) + 33.724 (Jul. 2016 ) + 32.719 (Oct. 2016 ) + 30.558 (Jan. 2017 ) = $129 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).

Brady Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=128.506/1896.2815
=6.78 %

Brady Corp's Enterprise Value for the quarter that ended in Jan. 2017 was $1,896 Mil.
Brady Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 31.505 (Apr. 2016 ) + 33.724 (Jul. 2016 ) + 32.719 (Oct. 2016 ) + 30.558 (Jan. 2017 ) = $129 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.

Brady Corp Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
ev2ebit 12.8110.4914.319.268.3127.84-24.58-39.2537.2414.49

Brady Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit -33.27-35.05-33.0337.2433.7928.7828.3314.4914.3814.76
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