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GuruFocus has detected 7 Warning Signs with The Wendy's Co $WEN.
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The Wendy's Co (NAS:WEN)
EV-to-EBIT
20.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, The Wendy's Co's enterprise value is $6,365 Mil. The Wendy's Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $314 Mil. Therefore, The Wendy's Co's EV/EBIT ratio for today is 20.30.

WEN' s EV-to-EBIT Range Over the Past 10 Years
Min: -54.5   Max: 205.2
Current: 20.3

-54.5
205.2

During the past 13 years, the highest EV/EBIT Ratio of The Wendy's Co was 205.20. The lowest was -54.50. And the median was 21.40.

WEN's EV-to-EBIT is ranked lower than
54% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 16.92 vs. WEN: 20.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). The Wendy's Co's enterprise value for the quarter that ended in Mar. 2017 was $5,713 Mil. The Wendy's Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $314 Mil. The Wendy's Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 5.49%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=6365.334/313.51
=20.30

The Wendy's Co's current Enterprise Value is $6,365 Mil.
The Wendy's Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 65.924 (Jun. 2016 ) + 106.586 (Sep. 2016 ) + 79.891 (Dec. 2016 ) + 61.109 (Mar. 2017 ) = $314 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).

The Wendy's Co'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 )
=313.51/5712.988
=5.49 %

The Wendy's Co's Enterprise Value for the quarter that ended in Mar. 2017 was $5,713 Mil.
The Wendy's Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 65.924 (Jun. 2016 ) + 106.586 (Sep. 2016 ) + 79.891 (Dec. 2016 ) + 61.109 (Mar. 2017 ) = $314 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.

The Wendy's Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 20.54-6.4634.2424.7721.4233.3232.5818.1715.7517.80

The Wendy's Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 18.1726.8327.9122.7715.7514.7813.5512.4117.8018.22
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