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

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Applied Materials Inc's enterprise value is $29,187 Mil. Applied Materials Inc's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $1,520 Mil. Therefore, Applied Materials Inc's EV/EBIT ratio for today is 19.20.

AMAT' s 10-Year EV/EBIT Range
Min: -375.1   Max: 259.1
Current: 19.2

-375.1
259.1

During the past 13 years, the highest EV/EBIT Ratio of Applied Materials Inc was 259.10. The lowest was -375.10. And the median was 13.00.

AMAT's EV/EBITis ranked higher than
76% of the 1164 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 37.82 vs. AMAT: 19.20 )

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. 2014 was $24,785 Mil. Applied Materials Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was $1,520 Mil. Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 was 6.13%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=29187.438/1520
=19.20

Applied Materials Inc's current Enterprise Value is $29,187 Mil.
Applied Materials Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 330 (Jan. 2014 ) + 387 (Apr. 2014 ) + 391 (Jul. 2014 ) + 412 (Oct. 2014 ) = $1,520 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. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Oct. 2014 )
=1520/24785.4426
=6.13 %

Applied Materials Inc's Enterprise Value for the quarter that ended in Oct. 2014 was $24,785 Mil.
Applied Materials Inc's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 330 (Jan. 2014 ) + 387 (Apr. 2014 ) + 391 (Jul. 2014 ) + 412 (Oct. 2014 ) = $1,520 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.

Applied Materials Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebit 16.1415.7010.4111.26-36.4510.134.9230.8949.8916.31

Applied Materials Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebit 10.4330.8957.88-85.49-70.4949.8927.7019.1418.9616.31
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