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American International Group Inc (NYSE:AIG)
EV/EBIT
8.92 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, American International Group Inc's enterprise value is $93,635 Mil. American International Group Inc's operating income for the trailing twelve months (TTM) ended in Dec. 2014 was $10,501 Mil. Therefore, American International Group Inc's EV/EBIT ratio for today is 8.92.

AIG' s 10-Year EV/EBIT Range
Min: -36.3   Max: 914.2
Current: 8.83

-36.3
914.2

During the past 13 years, the highest EV/EBIT Ratio of American International Group Inc was 914.20. The lowest was -36.30. And the median was 12.40.

AIG's EV/EBITis ranked higher than
84% of the 197 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 9.28 vs. AIG: 8.83 )

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. 2014 was $96,999 Mil. American International Group Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2014 was $10,501 Mil. American International Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2014 was 10.83%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=93634.700/10501
=8.92

American International Group Inc's current Enterprise Value is $93,635 Mil.
American International Group Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2014 was 2273 (Mar. 2014 ) + 4480 (Jun. 2014 ) + 3019 (Sep. 2014 ) + 729 (Dec. 2014 ) = $10,501 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).

American International Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2014 )
=10501/96998.9591
=10.83 %

American International Group Inc's Enterprise Value for the quarter that ended in Dec. 2014 was $96,999 Mil.
American International Group Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2014 was 2273 (Mar. 2014 ) + 4480 (Jun. 2014 ) + 3019 (Sep. 2014 ) + 729 (Dec. 2014 ) = $10,501 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

American International Group Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 17.0913.1028.68-1.78-12.469.36828.1724.679.959.24

American International Group Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebit 7.8424.6760.5231.2363.549.9510.539.337.779.24
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