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GuruFocus has detected 2 Warning Signs with Alcoa Corp $AA.
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Alcoa Corp (NYSE:AA)
EV/EBIT
-16.29 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Alcoa Corp's enterprise value is $9,352 Mil. Alcoa Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-574 Mil. Therefore, Alcoa Corp's EV/EBIT ratio for today is -16.29.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Alcoa Corp's enterprise value for the quarter that ended in Sep. 2016 was $0 Mil. Alcoa Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-574 Mil. Alcoa Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was %.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=9351.830/-574
=-16.29

Alcoa Corp's current Enterprise Value is $9,352 Mil.
Alcoa Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -736 (Dec. 2015 ) + -126 (Mar. 2016 ) + 115 (Jun. 2016 ) + 173 (Sep. 2016 ) = $-574 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).

Alcoa Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=-574/0
= %

Alcoa Corp's Enterprise Value for the quarter that ended in Sep. 2016 was $0 Mil.
Alcoa Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -736 (Dec. 2015 ) + -126 (Mar. 2016 ) + 115 (Jun. 2016 ) + 173 (Sep. 2016 ) = $-574 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.

Alcoa Corp Annual Data

Dec13Dec14Dec15
ev2ebit 0.000.000.000.000.000.000.000.000.000.00

Alcoa Corp Quarterly Data

Dec13Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 0.000.000.000.000.000.000.000.000.000.00
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