Switch to:
Amgen Inc (NAS:AMGN)
EV/EBIT
21.40 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Amgen Inc's enterprise value is $127,642 Mil. Amgen Inc's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $5,919 Mil. Therefore, Amgen Inc's EV/EBIT ratio for today is 21.40.

AMGN' s 10-Year EV/EBIT Range
Min: 8   Max: 27.5
Current: 21.4

8
27.5

During the past 13 years, the highest EV/EBIT Ratio of Amgen Inc was 27.50. The lowest was 8.00. And the median was 14.50.

AMGN's EV/EBITis ranked higher than
95% of the 988 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. AMGN: 21.40 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Amgen Inc's enterprise value for the quarter that ended in Sep. 2014 was $111,739 Mil. Amgen Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $5,919 Mil. Amgen Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 5.30%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=127642.200/5919
=21.56

Amgen Inc's current Enterprise Value is $127,642 Mil.
Amgen Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 1187 (Dec. 2013 ) + 1364 (Mar. 2014 ) + 1902 (Jun. 2014 ) + 1466 (Sep. 2014 ) = $5,919 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 Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=5919/111738.876
=5.30 %

Amgen Inc's Enterprise Value for the quarter that ended in Sep. 2014 was $111,739 Mil.
Amgen Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 1187 (Dec. 2013 ) + 1364 (Mar. 2014 ) + 1902 (Jun. 2014 ) + 1466 (Sep. 2014 ) = $5,919 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 24.1319.8121.4613.7011.729.718.5012.0312.1316.84

Amgen Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 12.2011.6512.1314.3413.8415.4416.8418.2415.8018.88
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK