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Airgas Inc (NYSE:ARG)
EV/EBIT
16.62 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Airgas Inc's enterprise value is $10,523 Mil. Airgas Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $631 Mil. Therefore, Airgas Inc's EV/EBIT ratio for today is 16.62.

ARG' s 10-Year EV/EBIT Range
Min: 7.5   Max: 18
Current: 16.62

7.5
18

During the past 13 years, the highest EV/EBIT Ratio of Airgas Inc was 18.00. The lowest was 7.50. And the median was 14.40.

ARG's EV/EBITis ranked higher than
70% of the 2028 Companies
in the Global Diversified Industrials industry.

( Industry Median: 17.19 vs. ARG: 16.62 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Airgas Inc's enterprise value for the quarter that ended in Mar. 2014 was $10,303 Mil. Airgas Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $631 Mil. Airgas Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 6.12%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=10522.809/630.534
=16.69

Airgas Inc's current Enterprise Value is $10,523 Mil.
Airgas Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 156.614 (Jun. 2013 ) + 168.769 (Sep. 2013 ) + 154.919 (Dec. 2013 ) + 150.232 (Mar. 2014 ) = $631 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).

Airgas Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=630.534/10302.8806
=6.12 %

Airgas Inc's Enterprise Value for the quarter that ended in Mar. 2014 was $10,303 Mil.
Airgas Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 156.614 (Jun. 2013 ) + 168.769 (Sep. 2013 ) + 154.919 (Dec. 2013 ) + 150.232 (Mar. 2014 ) = $631 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.

Airgas Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebit 12.8814.1913.8011.148.5016.9115.1016.0716.3716.34

Airgas Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebit 15.3416.0714.9214.6315.6316.3715.7516.2816.9716.34
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