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GuruFocus has detected 5 Warning Signs with Applied Materials Inc $AMAT.
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Applied Materials Inc (NAS:AMAT)
EV/EBIT
17.72 (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 $38,427 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $2,168 Mil. Therefore, Applied Materials Inc's EV/EBIT ratio for today is 17.72.

AMAT' s EV/EBIT Range Over the Past 10 Years
Min: -123.1   Max: 26442.8
Current: 14.67

-123.1
26442.8

During the past 13 years, the highest EV/EBIT Ratio of Applied Materials Inc was 26442.80. The lowest was -123.10. And the median was 11.80.

AMAT's EV/EBIT is ranked higher than
62% of the 585 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 18.61 vs. AMAT: 14.67 )

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. 2016 was $30,942 Mil. Applied Materials Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $2,168 Mil. Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 was 7.01%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=38426.668/2168
=17.72

Applied Materials Inc's current Enterprise Value is $38,427 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 356 (Jan. 2016 ) + 432 (Apr. 2016 ) + 602 (Jul. 2016 ) + 778 (Oct. 2016 ) = $2,168 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).

Applied Materials Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2016 )=EBIT (TTM)/Enterprise Value (Q: Oct. 2016 )
=2168/30942.24
=7.01 %

Applied Materials Inc's Enterprise Value for the quarter that ended in Oct. 2016 was $30,942 Mil.
Applied Materials Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 356 (Jan. 2016 ) + 432 (Apr. 2016 ) + 602 (Jul. 2016 ) + 778 (Oct. 2016 ) = $2,168 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.

Applied Materials Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebit 9.9910.69-30.899.964.8430.9748.4516.6911.1714.27

Applied Materials Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 16.6916.1913.6511.8211.1712.7314.2315.6614.2713.73
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