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GuruFocus has detected 7 Warning Signs with Toro Co $TTC.
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Toro Co (NYSE:TTC)
EV-to-EBIT
20.34 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Toro Co's enterprise value is $7,238 Mil. Toro Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $356 Mil. Therefore, Toro Co's EV/EBIT ratio for today is 20.34.

TTC' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.5   Max: 21.3
Current: 20.33

5.5
21.3

During the past 13 years, the highest EV/EBIT Ratio of Toro Co was 21.30. The lowest was 5.50. And the median was 12.30.

TTC's EV-to-EBIT is ranked lower than
61% of the 1949 Companies
in the Global Tools & Accessories industry.

( Industry Median: 16.53 vs. TTC: 20.33 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Toro Co's enterprise value for the quarter that ended in Jan. 2017 was $6,556 Mil. Toro Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $356 Mil. Toro Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was 5.43%.


Definition

Toro Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=7237.828/355.881
=20.34

Toro Co's current Enterprise Value is $7,238 Mil.
Toro Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 158.963 (Apr. 2016 ) + 85.433 (Jul. 2016 ) + 47.049 (Oct. 2016 ) + 64.436 (Jan. 2017 ) = $356 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).

Toro Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=355.881/6556.1963
=5.43 %

Toro Co's Enterprise Value for the quarter that ended in Jan. 2017 was $6,556 Mil.
Toro Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 158.963 (Apr. 2016 ) + 85.433 (Jul. 2016 ) + 47.049 (Oct. 2016 ) + 64.436 (Jan. 2017 ) = $356 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.

Toro Co Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebit 9.806.6211.3011.569.1012.0113.9512.8614.0915.07

Toro Co Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 12.8614.4314.1013.7814.0913.6614.4914.9015.0718.42
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