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ABB Ltd (NYSE:ABB)
EV/EBIT
10.94 (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 $47,746 Mil. ABB Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $4,366 Mil. Therefore, ABB Ltd's EV/EBIT ratio for today is 10.94.

ABB' s 10-Year EV/EBIT Range
Min: 3.5   Max: 19.2
Current: 14.77

3.5
19.2

During the past 13 years, the highest EV/EBIT Ratio of ABB Ltd was 19.20. The lowest was 3.50. And the median was 12.40.

ABB's EV/EBITis ranked lower than
53% of the 1356 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.56 vs. ABB: 14.77 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). ABB Ltd's enterprise value for the quarter that ended in Jun. 2015 was $49,634 Mil. ABB Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $4,366 Mil. ABB Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 8.80%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=47746.317/4366
=10.94

ABB Ltd's current Enterprise Value is $47,746 Mil.
ABB Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1073 (Jun. 2014 ) + 1241 (Sep. 2014 ) + 1072 (Dec. 2014 ) + 980 (Jun. 2015 ) = $4,366 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. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=4366/49633.7984
=8.80 %

ABB Ltd's Enterprise Value for the quarter that ended in Jun. 2015 was $49,634 Mil.
ABB Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1073 (Jun. 2014 ) + 1241 (Sep. 2014 ) + 1072 (Dec. 2014 ) + 980 (Jun. 2015 ) = $4,366 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 11.3314.1214.386.188.8511.608.8112.0714.1811.57

ABB Ltd Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Jun15
ev2ebit 12.0713.2812.4212.9314.1814.4813.6013.1911.570.00
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