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Amgen Inc (NAS:AMGN)
EV/EBIT
17.20 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Amgen Inc's enterprise value is $99,900 Mil. Amgen Inc's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $5,867 Mil. Therefore, Amgen Inc's EV/EBIT ratio for today is 17.20.

AMGN' s 10-Year EV/EBIT Range
Min: 8   Max: 30.4
Current: 17.2

8
30.4

During the past 13 years, the highest EV/EBIT Ratio of Amgen Inc was 30.40. The lowest was 8.00. And the median was 14.30.

AMGN's EV/EBITis ranked higher than
63% of the 468 Companies
in the Global Biotechnology industry.

( Industry Median: 20.00 vs. AMGN: 17.20 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Amgen Inc's enterprise value for the quarter that ended in Dec. 2013 was $98,758 Mil. Amgen Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $5,867 Mil. Amgen Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 5.94%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=99900.142/5867
=17.03

Amgen Inc's current Enterprise Value is $99,900 Mil.
Amgen Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1442 (Mar. 2013 ) + 1550 (Jun. 2013 ) + 1688 (Sep. 2013 ) + 1187 (Dec. 2013 ) = $5,867 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).

Amgen Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=5867/98758.1504
=5.94 %

Amgen Inc's Enterprise Value for the quarter that ended in Dec. 2013 was $98,758 Mil.
Amgen Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1442 (Mar. 2013 ) + 1550 (Jun. 2013 ) + 1688 (Sep. 2013 ) + 1187 (Dec. 2013 ) = $5,867 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.

Amgen Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 24.1319.8121.4613.7011.729.718.5012.0312.1316.83

Amgen Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 10.6412.0312.2612.2011.6512.1314.3413.8415.4416.83
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