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ABB Ltd (NYSE:ABB)
EV/EBIT
18.51 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, ABB Ltd's enterprise value is $50,657 Mil. ABB Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $2,737 Mil. Therefore, ABB Ltd's EV/EBIT ratio for today is 18.51.

ABB' s EV/EBIT Range Over the Past 10 Years
Min: 3.8   Max: 18.6
Current: 18.36

3.8
18.6

During the past 13 years, the highest EV/EBIT Ratio of ABB Ltd was 18.60. The lowest was 3.80. And the median was 11.90.

ABB's EV/EBIT is ranked lower than
59% of the 1396 Companies
in the Global Diversified Industrials industry.

( Industry Median: 15.01 vs. ABB: 18.36 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). ABB Ltd's enterprise value for the quarter that ended in Jun. 2016 was $44,269 Mil. ABB Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $2,737 Mil. ABB Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2016 was 6.18%.


Definition

ABB Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=50656.676/2737
=18.51

ABB Ltd's current Enterprise Value is $50,657 Mil.
ABB Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was 900 (Sep. 2015 ) + 368 (Dec. 2015 ) + 802 (Mar. 2016 ) + 667 (Jun. 2016 ) = $2,737 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).

ABB Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2016 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2016 )
=2737/44269.41
=6.18 %

ABB Ltd's Enterprise Value for the quarter that ended in Jun. 2016 was $44,269 Mil.
ABB Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was 900 (Sep. 2015 ) + 368 (Dec. 2015 ) + 802 (Mar. 2016 ) + 667 (Jun. 2016 ) = $2,737 Mil.

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

ABB Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 13.8013.675.958.6010.339.3111.6813.5412.4813.63

ABB Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ev2ebit 14.0513.3913.9612.4811.9711.6811.0713.6314.5115.96
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