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Alcoa Inc (NYSE:AA)
EV/EBIT
-22.59 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Alcoa Inc's enterprise value is $27,669 Mil. Alcoa Inc's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $-1,229 Mil. Therefore, Alcoa Inc's EV/EBIT ratio for today is -22.59.

AA' s 10-Year EV/EBIT Range
Min: -52.5   Max: 152.3
Current: -22.59

-52.5
152.3

During the past 13 years, the highest EV/EBIT Ratio of Alcoa Inc was 152.30. The lowest was -52.50. And the median was 15.45.

AA's EV/EBITis ranked higher than
54% of the 2606 Companies
in the Global Aluminum industry.

( Industry Median: 9999.00 vs. AA: -22.59 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Alcoa Inc's enterprise value for the quarter that ended in Sep. 2014 was $27,292 Mil. Alcoa Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $-1,229 Mil. Alcoa Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was -4.50%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=27669.057/-1229
=-22.51

Alcoa Inc's current Enterprise Value is $27,669 Mil.
Alcoa Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was -1896 (Dec. 2013 ) + -129 (Mar. 2014 ) + 317 (Jun. 2014 ) + 479 (Sep. 2014 ) = $-1,229 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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).

Alcoa Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=-1229/27291.6026
=-4.50 %

Alcoa Inc's Enterprise Value for the quarter that ended in Sep. 2014 was $27,292 Mil.
Alcoa Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was -1896 (Dec. 2013 ) + -129 (Mar. 2014 ) + 317 (Jun. 2014 ) + 479 (Sep. 2014 ) = $-1,229 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Alcoa Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 15.1417.939.5513.7727.51-22.8820.8513.3641.46-15.31

Alcoa Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 30.75145.0141.4636.1644.2327.93-15.31-13.70-17.96-22.21
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