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A.O. Smith Corp (NYSE:AOS)
EV/EBIT
17.23 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, A.O. Smith Corp's enterprise value is $7,417 Mil. A.O. Smith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $431 Mil. Therefore, A.O. Smith Corp's EV/EBIT ratio for today is 17.23.

AOS' s EV/EBIT Range Over the Past 10 Years
Min: 4.8   Max: 31.6
Current: 17.22

4.8
31.6

During the past 13 years, the highest EV/EBIT Ratio of A.O. Smith Corp was 31.60. The lowest was 4.80. And the median was 13.70.

AOS's EV/EBIT is ranked lower than
60% of the 1561 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.10 vs. AOS: 17.22 )

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 Mar. 2016 was $6,358 Mil. A.O. Smith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $431 Mil. A.O. Smith Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 6.77%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=7416.950/430.5
=17.23

A.O. Smith Corp's current Enterprise Value is $7,417 Mil.
A.O. Smith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 105.7 (Jun. 2015 ) + 108.8 (Sep. 2015 ) + 110.7 (Dec. 2015 ) + 105.3 (Mar. 2016 ) = $431 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 Mar. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=430.5/6357.9645
=6.77 %

A.O. Smith Corp's Enterprise Value for the quarter that ended in Mar. 2016 was $6,358 Mil.
A.O. Smith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 105.7 (Jun. 2015 ) + 108.8 (Sep. 2015 ) + 110.7 (Dec. 2015 ) + 105.3 (Mar. 2016 ) = $431 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.

A.O. Smith Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 12.0511.159.3210.3523.229.8011.0919.1116.1615.47

A.O. Smith Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 19.1116.5816.7915.4116.1618.0318.3314.6515.4714.77
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