Price To Pre-Tax Income (P/EBT)
Foot Locker, Inc. had a price to pre-tax income ratio of 3.73 at the end of FY 2022.
The price to pre-tax income ratio, also called the Price to Earnings Before Tax (P/EBT) ratio, relates a company's valuation to its profits before tax is deducted. It is calculated by dividing the market capitalization by the profits before tax. A company with a small positive P/EBT ratio may represent better value than a company with a high ratio. Renowned investor Warren Buffett is said to frequently use a P/EBT ratio of 10 when valuing businesses.