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Applied Materials Inc (NAS:AMAT)
EV/EBIT
14.50 (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 $23,192 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2016 was $1,600 Mil. Therefore, Applied Materials Inc's EV/EBIT ratio for today is 14.50.

AMAT' s EV/EBIT Range Over the Past 10 Years
Min: -122.9   Max: 26442.8
Current: 14.5

-122.9
26442.8

During the past 13 years, the highest EV/EBIT Ratio of Applied Materials Inc was 26442.80. The lowest was -122.90. And the median was 11.80.

AMAT's EV/EBIT is ranked higher than
52% of the 566 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 15.25 vs. AMAT: 14.50 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Applied Materials Inc's enterprise value for the quarter that ended in Jan. 2016 was $20,184 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2016 was $1,600 Mil. Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2016 was 7.93%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=23192.010/1600
=14.50

Applied Materials Inc's current Enterprise Value is $23,192 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2016 was 416 (Apr. 2015 ) + 399 (Jul. 2015 ) + 429 (Oct. 2015 ) + 356 (Jan. 2016 ) = $1,600 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 Jan. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2016 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2016 )
=1600/20184.208
=7.93 %

Applied Materials Inc's Enterprise Value for the quarter that ended in Jan. 2016 was $20,184 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2016 was 416 (Apr. 2015 ) + 399 (Jul. 2015 ) + 429 (Oct. 2015 ) + 356 (Jan. 2016 ) = $1,600 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 10.319.9910.69-30.899.964.8430.9748.4516.6911.17

Applied Materials Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ev2ebit 48.4526.8218.8318.3716.6916.1913.6511.8211.1712.62
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