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GuruFocus has detected 3 Warning Signs with Cato Corp $CATO.
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Cato Corp (NYSE:CATO)
EV-to-EBIT
11.63 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Cato Corp's enterprise value is $315.7 Mil. Cato Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $27.2 Mil. Therefore, Cato Corp's EV/EBIT ratio for today is 11.63.

CATO' s EV-to-EBIT Range Over the Past 10 Years
Min: 3.7   Max: 13
Current: 11.63

3.7
13

During the past 13 years, the highest EV/EBIT Ratio of Cato Corp was 13.00. The lowest was 3.70. And the median was 6.70.

CATO's EV-to-EBIT is ranked higher than
87% of the 1045 Companies
in the Global Apparel Stores industry.

( Industry Median: 14.87 vs. CATO: 11.63 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cato Corp's enterprise value for the quarter that ended in Apr. 2017 was $365.6 Mil. Cato Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $27.2 Mil. Cato Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2017 was 7.43%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=315.690/27.154
=11.63

Cato Corp's current Enterprise Value is $315.7 Mil.
Cato Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 16.601 (Jul. 2016 ) + 2.086 (Oct. 2016 ) + -16.651 (Jan. 2017 ) + 25.118 (Apr. 2017 ) = $27.2 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).

Cato Corp'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 )
=27.154/365.5836
=7.43 %

Cato Corp's Enterprise Value for the quarter that ended in Apr. 2017 was $365.6 Mil.
Cato Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 16.601 (Jul. 2016 ) + 2.086 (Oct. 2016 ) + -16.651 (Jan. 2017 ) + 25.118 (Apr. 2017 ) = $27.2 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.

Cato Corp Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebit 7.444.816.295.195.346.186.8410.148.478.66

Cato Corp Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev2ebit 10.149.038.638.448.477.197.516.498.6613.46
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