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GuruFocus has detected 1 Warning Sign with Rite Aid Corp $RAD.
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Rite Aid Corp (NYSE:RAD)
EV-to-EBIT
22.77 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Rite Aid Corp's enterprise value is $10,940 Mil. Rite Aid Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $480 Mil. Therefore, Rite Aid Corp's EV/EBIT ratio for today is 22.77.

RAD' s EV-to-EBIT Range Over the Past 10 Years
Min: -2331.6   Max: 3761.3
Current: 22.78

-2331.6
3761.3

During the past 13 years, the highest EV/EBIT Ratio of Rite Aid Corp was 3761.30. The lowest was -2331.60. And the median was 21.95.

RAD's EV-to-EBIT is ranked lower than
71% of the 441 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 15.48 vs. RAD: 22.78 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Rite Aid Corp's enterprise value for the quarter that ended in Feb. 2017 was $13,405 Mil. Rite Aid Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $480 Mil. Rite Aid Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 was 3.58%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=10939.693/480.436
=22.77

Rite Aid Corp's current Enterprise Value is $10,940 Mil.
Rite Aid Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 94.216 (May. 2016 ) + 131.089 (Aug. 2016 ) + 113.232 (Nov. 2016 ) + 141.899 (Feb. 2017 ) = $480 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).

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

Earnings Yield (Joel Greenblatt) (Q: Feb. 2017 )=EBIT (TTM)/Enterprise Value (Q: Feb. 2017 )
=480.436/13405.423
=3.58 %

Rite Aid Corp's Enterprise Value for the quarter that ended in Feb. 2017 was $13,405 Mil.
Rite Aid Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 94.216 (May. 2016 ) + 131.089 (Aug. 2016 ) + 113.232 (Nov. 2016 ) + 141.899 (Feb. 2017 ) = $480 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.

Rite Aid Corp Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ev2ebit 48.20-2.97216.733,730.2156.3614.4717.8016.1720.8827.90

Rite Aid Corp Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebit 14.5016.1716.8921.8120.7820.8822.3423.3028.4027.90
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