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GuruFocus has detected 3 Warning Signs with Steelcase Inc $SCS.
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Steelcase Inc (NYSE:SCS)
EV-to-EBIT
9.38 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Steelcase Inc's enterprise value is $2,003 Mil. Steelcase Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $214 Mil. Therefore, Steelcase Inc's EV/EBIT ratio for today is 9.38.

SCS' s EV-to-EBIT Range Over the Past 10 Years
Min: -282.8   Max: 183.8
Current: 9.38

-282.8
183.8

During the past 13 years, the highest EV/EBIT Ratio of Steelcase Inc was 183.80. The lowest was -282.80. And the median was 11.40.

SCS's EV-to-EBIT is ranked higher than
81% of the 1949 Companies
in the Global Business Equipment industry.

( Industry Median: 16.53 vs. SCS: 9.38 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Steelcase Inc's enterprise value for the quarter that ended in Feb. 2017 was $1,904 Mil. Steelcase Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $214 Mil. Steelcase Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 was 11.21%.


Definition

Steelcase Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2003.422/213.5
=9.38

Steelcase Inc's current Enterprise Value is $2,003 Mil.
Steelcase Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 35.9 (May. 2016 ) + 64 (Aug. 2016 ) + 59.1 (Nov. 2016 ) + 54.5 (Feb. 2017 ) = $214 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).

Steelcase Inc'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 )
=213.5/1904.02
=11.21 %

Steelcase Inc's Enterprise Value for the quarter that ended in Feb. 2017 was $1,904 Mil.
Steelcase Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 35.9 (May. 2016 ) + 64 (Aug. 2016 ) + 59.1 (Nov. 2016 ) + 54.5 (Feb. 2017 ) = $214 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.

Steelcase Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ev2ebit 8.5971.37-77.1418.9211.2524.8810.8714.947.928.92

Steelcase Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebit 13.1414.9414.8214.2212.767.9210.659.659.758.92
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