Switch to:
GuruFocus has detected 6 Warning Signs with Weight Watchers International Inc $WTW.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Weight Watchers International Inc (NYSE:WTW)
EV-to-EBIT
16.34 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Weight Watchers International Inc's enterprise value is $3,518 Mil. Weight Watchers International Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $215 Mil. Therefore, Weight Watchers International Inc's EV/EBIT ratio for today is 16.34.

WTW' s EV-to-EBIT Range Over the Past 10 Years
Min: 2.5   Max: 20.6
Current: 16.34

2.5
20.6

During the past 13 years, the highest EV/EBIT Ratio of Weight Watchers International Inc was 20.60. The lowest was 2.50. And the median was 10.80.

WTW's EV-to-EBIT is ranked higher than
57% of the 92 Companies
in the Global Personal Services industry.

( Industry Median: 15.62 vs. WTW: 16.34 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Weight Watchers International Inc's enterprise value for the quarter that ended in Mar. 2017 was $2,860 Mil. Weight Watchers International Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $215 Mil. Weight Watchers International Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 7.53%.


Definition

Weight Watchers International Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3518.262/215.258
=16.34

Weight Watchers International Inc's current Enterprise Value is $3,518 Mil.
Weight Watchers International Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 73.124 (Jun. 2016 ) + 66.938 (Sep. 2016 ) + 45.603 (Dec. 2016 ) + 29.593 (Mar. 2017 ) = $215 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).

Weight Watchers International 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 )
=215.258/2860.1034
=7.53 %

Weight Watchers International Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $2,860 Mil.
Weight Watchers International Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 73.124 (Jun. 2016 ) + 66.938 (Sep. 2016 ) + 45.603 (Dec. 2016 ) + 29.593 (Mar. 2017 ) = $215 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.

Weight Watchers International Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 11.923.2310.2410.569.3010.369.3511.3019.2613.18

Weight Watchers International Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 11.309.2510.0711.7519.2616.9316.2815.1613.180.00
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)

GF Chat

FEEDBACK