Switch to:
GuruFocus has detected 10 Warning Signs with American Electric Power Co Inc $AEP.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
American Electric Power Co Inc (NYSE:AEP)
EV-to-EBIT
40.26 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, American Electric Power Co Inc's enterprise value is $54,459 Mil. American Electric Power Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,353 Mil. Therefore, American Electric Power Co Inc's EV/EBIT ratio for today is 40.26.

AEP' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.7   Max: 43
Current: 40.26

8.7
43

During the past 13 years, the highest EV/EBIT Ratio of American Electric Power Co Inc was 43.00. The lowest was 8.70. And the median was 13.20.

AEP's EV-to-EBIT is ranked lower than
94% of the 864 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 15.02 vs. AEP: 40.26 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). American Electric Power Co Inc's enterprise value for the quarter that ended in Dec. 2016 was $52,408 Mil. American Electric Power Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,353 Mil. American Electric Power Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 2.58%.


Definition

American Electric Power Co Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=54458.931/1352.8
=40.26

American Electric Power Co Inc's current Enterprise Value is $54,459 Mil.
American Electric Power Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 930.6 (Mar. 2016 ) + 903.7 (Jun. 2016 ) + -1098.6 (Sep. 2016 ) + 617.1 (Dec. 2016 ) = $1,353 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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).

American Electric Power Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=1352.8/52408.3616
=2.58 %

American Electric Power Co Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $52,408 Mil.
American Electric Power Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 930.6 (Mar. 2016 ) + 903.7 (Jun. 2016 ) + -1098.6 (Sep. 2016 ) + 617.1 (Dec. 2016 ) = $1,353 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

American Electric Power Co Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 13.3310.3211.4712.2011.4013.8313.9014.9213.8538.74

American Electric Power Co Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 12.7014.9214.0413.6513.7613.8516.1916.6342.0138.74
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK