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Applied Materials Inc (NAS:AMAT)
EV/EBIT
10.84 (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 $18,479 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2015 was $1,704 Mil. Therefore, Applied Materials Inc's EV/EBIT ratio for today is 10.84.

AMAT' s EV/EBIT Range Over the Past 10 Years
Min: -54.8   Max: 97.4
Current: 13.75

-54.8
97.4

During the past 13 years, the highest EV/EBIT Ratio of Applied Materials Inc was 97.40. The lowest was -54.80. And the median was 16.00.

AMAT's EV/EBIT is ranked higher than
51% of the 782 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 13.52 vs. AMAT: 13.75 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Applied Materials Inc's enterprise value for the quarter that ended in Oct. 2015 was $19,030 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2015 was $1,704 Mil. Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2015 was 8.95%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=18479.119/1704
=10.84

Applied Materials Inc's current Enterprise Value is $18,479 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2015 was 460 (Jan. 2015 ) + 416 (Apr. 2015 ) + 399 (Jul. 2015 ) + 429 (Oct. 2015 ) = $1,704 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 Oct. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2015 )=EBIT (TTM)/Enterprise Value (Q: Oct. 2015 )
=1704/19030.2
=8.95 %

Applied Materials Inc's Enterprise Value for the quarter that ended in Oct. 2015 was $19,030 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2015 was 460 (Jan. 2015 ) + 416 (Apr. 2015 ) + 399 (Jul. 2015 ) + 429 (Oct. 2015 ) = $1,704 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

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ev2ebit 14.8113.0913.87-22.2920.065.7013.8294.9722.9614.93

Applied Materials Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
ev2ebit 86.3594.9738.1423.0321.9422.9621.6818.1815.7214.93
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