Switch to:
GuruFocus has detected 4 Warning Signs with Overstock.com Inc $OSTK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Overstock.com Inc (NAS:OSTK)
EV-to-EBIT
-42.59 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Overstock.com Inc's enterprise value is $279 Mil. Overstock.com Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $-7 Mil. Therefore, Overstock.com Inc's EV/EBIT ratio for today is -42.59.

During the past 13 years, the highest EV/EBIT Ratio of Overstock.com Inc was 786.90. The lowest was -57.30. And the median was 17.60.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Overstock.com Inc's enterprise value for the quarter that ended in Mar. 2017 was $359 Mil. Overstock.com Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $-7 Mil. Overstock.com Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was -1.82%.


Definition

Overstock.com Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=278.961/-6.55
=-42.59

Overstock.com Inc's current Enterprise Value is $279 Mil.
Overstock.com Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was -1.453 (Jun. 2016 ) + -3.723 (Sep. 2016 ) + 4.538 (Dec. 2016 ) + -5.912 (Mar. 2017 ) = $-7 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).

Overstock.com Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=-6.55/359.179
=-1.82 %

Overstock.com Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $359 Mil.
Overstock.com Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was -1.453 (Jun. 2016 ) + -3.723 (Sep. 2016 ) + 4.538 (Dec. 2016 ) + -5.912 (Mar. 2017 ) = $-7 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.

Overstock.com Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -7.22-25.9314.8514.89-5.9114.9735.5030.3247.0014.88

Overstock.com Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 30.3241.4836.6446.8947.0012.6020.3220.9114.88-54.84
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK