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Ares Commercial Real Estate Corp (NYSE:ACRE)
EV/EBIT
5.37 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Ares Commercial Real Estate Corp's enterprise value is $184.7 Mil. Ares Commercial Real Estate Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $34.4 Mil. Therefore, Ares Commercial Real Estate Corp's EV/EBIT ratio for today is 5.37.

ACRE' s 10-Year EV/EBIT Range
Min: -199.5   Max: 14.4
Current: 5.37

-199.5
14.4

During the past 4 years, the highest EV/EBIT Ratio of Ares Commercial Real Estate Corp was 14.40. The lowest was -199.50. And the median was 4.20.

ACRE's EV/EBITis ranked higher than
95% of the 535 Companies
in the Global REIT - Diversified industry.

( Industry Median: 21.45 vs. ACRE: 5.37 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Ares Commercial Real Estate Corp's enterprise value for the quarter that ended in Mar. 2015 was $138.9 Mil. Ares Commercial Real Estate Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $34.4 Mil. Ares Commercial Real Estate Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 24.75%.


Definition

Ares Commercial Real Estate Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=184.708/34.386
=5.37

Ares Commercial Real Estate Corp's current Enterprise Value is $184.7 Mil.
Ares Commercial Real Estate Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 8.479 (Jun. 2014 ) + 4.784 (Sep. 2014 ) + 10.881 (Dec. 2014 ) + 10.242 (Mar. 2015 ) = $34.4 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).

Ares Commercial Real Estate Corp'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 )
=34.386/138.927
=24.75 %

Ares Commercial Real Estate Corp's Enterprise Value for the quarter that ended in Mar. 2015 was $138.9 Mil.
Ares Commercial Real Estate Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 8.479 (Jun. 2014 ) + 4.784 (Sep. 2014 ) + 10.881 (Dec. 2014 ) + 10.242 (Mar. 2015 ) = $34.4 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.

Ares Commercial Real Estate Corp Annual Data

Dec11Dec12Dec13Dec14
ev2ebit 0.000.000.000.000.000.000.000.006.069.04

Ares Commercial Real Estate Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 0.00-85.10-20.221.456.061.965.141.729.044.04
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