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GuruFocus has detected 1 Warning Sign with American International Group Inc $AIG.
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American International Group Inc (NYSE:AIG)
EV-to-EBIT
64.77 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, American International Group Inc's enterprise value is $76,823 Mil. American International Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,186 Mil. Therefore, American International Group Inc's EV/EBIT ratio for today is 64.77.

AIG' s EV-to-EBIT Range Over the Past 10 Years
Min: -345.2   Max: 162.7
Current: 64.77

-345.2
162.7

During the past 13 years, the highest EV/EBIT Ratio of American International Group Inc was 162.70. The lowest was -345.20. And the median was 11.40.

AIG's EV-to-EBIT is ranked lower than
99% of the 189 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 7.41 vs. AIG: 64.77 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). American International Group Inc's enterprise value for the quarter that ended in Dec. 2016 was $82,303 Mil. American International Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,186 Mil. American International Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 1.44%.


Definition

American International Group Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=76822.517/1186
=64.77

American International Group Inc's current Enterprise Value is $76,823 Mil.
American International Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 92 (Mar. 2016 ) + 3178 (Jun. 2016 ) + 1066 (Sep. 2016 ) + -3150 (Dec. 2016 ) = $1,186 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 International Group 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 )
=1186/82303.043
=1.44 %

American International Group Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $82,303 Mil.
American International Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 92 (Mar. 2016 ) + 3178 (Jun. 2016 ) + 1066 (Sep. 2016 ) + -3150 (Dec. 2016 ) = $1,186 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 International Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 28.67-1.61-345.196.4863.2013.698.107.8320.1769.40

American International Group Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 6.717.836.838.3210.6720.17151.2790.8847.6769.40
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