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GuruFocus has detected 4 Warning Signs with AK Steel Holding Corp $AKS.
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AK Steel Holding Corp (NYSE:AKS)
EV-to-EBIT
19.55 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, AK Steel Holding Corp's enterprise value is $4,405 Mil. AK Steel Holding Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $225 Mil. Therefore, AK Steel Holding Corp's EV/EBIT ratio for today is 19.55.

AKS' s EV-to-EBIT Range Over the Past 10 Years
Min: -48.4   Max: 67.6
Current: 19.57

-48.4
67.6

During the past 13 years, the highest EV/EBIT Ratio of AK Steel Holding Corp was 67.60. The lowest was -48.40. And the median was 7.05.

AKS's EV-to-EBIT is ranked lower than
67% of the 427 Companies
in the Global Steel industry.

( Industry Median: 13.02 vs. AKS: 19.57 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). AK Steel Holding Corp's enterprise value for the quarter that ended in Dec. 2016 was $5,214 Mil. AK Steel Holding Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $225 Mil. AK Steel Holding Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 4.32%.


Definition

AK Steel Holding Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4405.003/225.3
=19.55

AK Steel Holding Corp's current Enterprise Value is $4,405 Mil.
AK Steel Holding Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 47.3 (Mar. 2016 ) + 64.7 (Jun. 2016 ) + 123.8 (Sep. 2016 ) + -10.5 (Dec. 2016 ) = $225 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).

AK Steel Holding Corp'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 )
=225.3/5213.8736
=4.32 %

AK Steel Holding Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $5,214 Mil.
AK Steel Holding Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 47.3 (Mar. 2016 ) + 64.7 (Jun. 2016 ) + 123.8 (Sep. 2016 ) + -10.5 (Dec. 2016 ) = $225 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.

AK Steel Holding Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 10.3627.73-40.65-15.77-8.51-18.2522.2732.29-14.6723.14

AK Steel Holding Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 39.9232.29-43.57-31.85-43.01-14.6743.5326.4420.1323.14
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