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Aetna Inc (NYSE:AET)
EV/EBIT
10.02 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Aetna Inc's enterprise value is $43,817 Mil. Aetna Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $4,374 Mil. Therefore, Aetna Inc's EV/EBIT ratio for today is 10.02.

AET' s 10-Year EV/EBIT Range
Min: -0.3   Max: 11.1
Current: 10.06

-0.3
11.1

During the past 13 years, the highest EV/EBIT Ratio of Aetna Inc was 11.10. The lowest was -0.30. And the median was 6.00.

AET's EV/EBITis ranked higher than
65% of the 20 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.75 vs. AET: 10.06 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Aetna Inc's enterprise value for the quarter that ended in Jun. 2015 was $48,662 Mil. Aetna Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $4,374 Mil. Aetna Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 8.99%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=43816.728/4373.5
=10.02

Aetna Inc's current Enterprise Value is $43,817 Mil.
Aetna Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1077.5 (Sep. 2014 ) + 510.5 (Dec. 2014 ) + 1445.6 (Mar. 2015 ) + 1339.9 (Jun. 2015 ) = $4,374 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).

Aetna Inc'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 )
=4373.5/48662.256
=8.99 %

Aetna Inc's Enterprise Value for the quarter that ended in Jun. 2015 was $48,662 Mil.
Aetna Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1077.5 (Sep. 2014 ) + 510.5 (Dec. 2014 ) + 1445.6 (Mar. 2015 ) + 1339.9 (Jun. 2015 ) = $4,374 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.

Aetna Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 5.348.309.956.196.364.164.895.999.069.33

Aetna Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 6.449.419.189.068.378.788.209.3310.1811.13
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