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Applied Materials Inc (NAS:AMAT)
EV/EBIT
14.28 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Applied Materials Inc's enterprise value is $18,516 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was $1,297 Mil. Therefore, Applied Materials Inc's EV/EBIT ratio for today is 14.28.

AMAT' s 10-Year EV/EBIT Range
Min: -217.2   Max: 259.1
Current: 14.24

-217.2
259.1

During the past 13 years, the highest EV/EBIT Ratio of Applied Materials Inc was 259.10. The lowest was -217.20. And the median was 13.20.

AMAT's EV/EBITis ranked lower than
57% of the 561 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 12.47 vs. AMAT: 14.24 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Applied Materials Inc's enterprise value for the quarter that ended in Jul. 2015 was $20,585 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was $1,297 Mil. Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2015 was 6.30%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=18515.695/1297
=14.28

Applied Materials Inc's current Enterprise Value is $18,516 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was 421 (Oct. 2014 ) + 460 (Jan. 2015 ) + 416 (Apr. 2015 ) + 0 (Jul. 2015 ) = $1,297 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).

Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jul. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jul. 2015 )
=1297/20584.576
=6.30 %

Applied Materials Inc's Enterprise Value for the quarter that ended in Jul. 2015 was $20,585 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jul. 2015 was 421 (Oct. 2014 ) + 460 (Jan. 2015 ) + 416 (Apr. 2015 ) + 0 (Jul. 2015 ) = $1,297 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.

Applied Materials Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebit 14.4310.319.9910.69-30.899.964.8430.9748.4316.69

Applied Materials Inc Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
ev2ebit -85.08-69.4948.4326.8218.8318.3716.6916.1913.6515.87
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