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GuruFocus has detected 3 Warning Signs with Dick's Sporting Goods Inc $DKS.
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Dick's Sporting Goods Inc (NYSE:DKS)
EV-to-EBIT
9.53 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Dick's Sporting Goods Inc's enterprise value is $4,425 Mil. Dick's Sporting Goods Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $464 Mil. Therefore, Dick's Sporting Goods Inc's EV/EBIT ratio for today is 9.53.

DKS' s EV-to-EBIT Range Over the Past 10 Years
Min: 6   Max: 1198.7
Current: 9.53

6
1198.7

During the past 13 years, the highest EV/EBIT Ratio of Dick's Sporting Goods Inc was 1198.70. The lowest was 6.00. And the median was 12.20.

DKS's EV-to-EBIT is ranked higher than
75% of the 750 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.74 vs. DKS: 9.53 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Dick's Sporting Goods Inc's enterprise value for the quarter that ended in Apr. 2017 was $5,747 Mil. Dick's Sporting Goods Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $464 Mil. Dick's Sporting Goods Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2017 was 8.08%.


Definition

Dick's Sporting Goods Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4425.438/464.446
=9.53

Dick's Sporting Goods Inc's current Enterprise Value is $4,425 Mil.
Dick's Sporting Goods Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 149.1 (Jul. 2016 ) + 77.535 (Oct. 2016 ) + 144.864 (Jan. 2017 ) + 92.947 (Apr. 2017 ) = $464 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).

Dick's Sporting Goods 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 )
=464.446/5747.3685
=8.08 %

Dick's Sporting Goods Inc's Enterprise Value for the quarter that ended in Apr. 2017 was $5,747 Mil.
Dick's Sporting Goods Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 149.1 (Jul. 2016 ) + 77.535 (Oct. 2016 ) + 144.864 (Jan. 2017 ) + 92.947 (Apr. 2017 ) = $464 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.

Dick's Sporting Goods Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebit 13.8540.8710.9112.459.9311.1411.259.447.9511.92

Dick's Sporting Goods Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev2ebit 9.4411.659.969.187.9510.2610.9012.2611.9212.37
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