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AbbVie Inc (NYSE:ABBV)
EV/EBIT
21.48 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, AbbVie Inc's enterprise value is $116,499 Mil. AbbVie Inc's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $5,361 Mil. Therefore, AbbVie Inc's EV/EBIT ratio for today is 21.48.

ABBV' s 10-Year EV/EBIT Range
Min: 10.3   Max: 21.8
Current: 21.48

10.3
21.8

During the past 5 years, the highest EV/EBIT Ratio of AbbVie Inc was 21.80. The lowest was 10.30. And the median was 14.20.

ABBV's EV/EBITis ranked higher than
85% of the 945 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 35.72 vs. ABBV: 21.48 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). AbbVie Inc's enterprise value for the quarter that ended in Sep. 2014 was $100,188 Mil. AbbVie Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $5,361 Mil. AbbVie Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 5.35%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=116499.458/5361
=21.73

AbbVie Inc's current Enterprise Value is $116,499 Mil.
AbbVie Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 1535 (Dec. 2013 ) + 1351 (Mar. 2014 ) + 1515 (Jun. 2014 ) + 960 (Sep. 2014 ) = $5,361 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).

AbbVie 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 )
=5361/100188.284
=5.35 %

AbbVie Inc's Enterprise Value for the quarter that ended in Sep. 2014 was $100,188 Mil.
AbbVie Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 1535 (Dec. 2013 ) + 1351 (Mar. 2014 ) + 1515 (Jun. 2014 ) + 960 (Sep. 2014 ) = $5,361 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.

AbbVie Inc Annual Data

Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.000.000.000.000.000.000.0010.5815.65

AbbVie Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 0.000.0010.5811.7411.5812.8315.6515.2416.4418.69
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