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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, AbbVie Inc's enterprise value is $111,848 Mil. AbbVie Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $2,971 Mil. Therefore, AbbVie Inc's EV/EBIT ratio for today is 37.65.

ABBV' s 10-Year EV/EBIT Range
Min: 10.3   Max: 33.7
Current: 38.9

10.3
33.7

During the past 6 years, the highest EV/EBIT Ratio of AbbVie Inc was 33.70. The lowest was 10.30. And the median was 15.40.

ABBV's EV/EBITis ranked lower than
63% of the 480 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 25.91 vs. ABBV: 38.90 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). AbbVie Inc's enterprise value for the quarter that ended in Mar. 2015 was $96,634 Mil. AbbVie Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $2,971 Mil. AbbVie Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 3.07%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=111848.345/2971
=37.65

AbbVie Inc's current Enterprise Value is $111,848 Mil.
AbbVie Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1506 (Jun. 2014 ) + 835 (Sep. 2014 ) + -898 (Dec. 2014 ) + 1528 (Mar. 2015 ) = $2,971 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 Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2015 )
=2971/96634.3206
=3.07 %

AbbVie Inc's Enterprise Value for the quarter that ended in Mar. 2015 was $96,634 Mil.
AbbVie Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1506 (Jun. 2014 ) + 835 (Sep. 2014 ) + -898 (Dec. 2014 ) + 1528 (Mar. 2015 ) = $2,971 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.

AbbVie Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 0.000.000.000.000.000.000.0010.5615.7438.18

AbbVie Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 10.5611.7611.5812.8815.7415.3316.4419.0038.1832.53
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