Switch to:
A O Smith Corp (NYSE:AOS)
EV/EBIT
23.78 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, A O Smith Corp's enterprise value is $6,498 Mil. A O Smith Corp's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $273 Mil. Therefore, A O Smith Corp's EV/EBIT ratio for today is 23.78.

AOS' s 10-Year EV/EBIT Range
Min: 9.7   Max: 36.2
Current: 23.78

9.7
36.2

During the past 13 years, the highest EV/EBIT Ratio of A O Smith Corp was 36.20. The lowest was 9.70. And the median was 14.70.

AOS's EV/EBITis ranked higher than
63% of the 2063 Companies
in the Global Diversified Industrials industry.

( Industry Median: 15.80 vs. AOS: 23.78 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). A O Smith Corp's enterprise value for the quarter that ended in Jun. 2014 was $6,829 Mil. A O Smith Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $273 Mil. A O Smith Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 4.00%.


Definition

A O Smith Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=6497.729/273.3
=23.78

A O Smith Corp's current Enterprise Value is $6,498 Mil.
A O Smith Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 61.6 (Sep. 2013 ) + 67.9 (Dec. 2013 ) + 65 (Mar. 2014 ) + 78.8 (Jun. 2014 ) = $273 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).

A O Smith Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jun. 2014 )
=273.3/6828.9664
=4.00 %

A O Smith Corp's Enterprise Value for the quarter that ended in Jun. 2014 was $6,829 Mil.
A O Smith Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 61.6 (Sep. 2013 ) + 67.9 (Dec. 2013 ) + 65 (Mar. 2014 ) + 78.8 (Jun. 2014 ) = $273 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.

A O Smith Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 18.2814.3512.0114.5420.6113.3820.919.4312.3429.51

A O Smith Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 11.2011.0711.3412.3424.3522.3226.9429.5124.4824.99
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