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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Airgas Inc's enterprise value is $12,940 Mil. Airgas Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $592 Mil. Therefore, Airgas Inc's EV/EBIT ratio for today is 21.87.

ARG' s EV/EBIT Range Over the Past 10 Years
Min: 7.7   Max: 22.2
Current: 21.87

7.7
22.2

During the past 13 years, the highest EV/EBIT Ratio of Airgas Inc was 22.20. The lowest was 7.70. And the median was 15.40.

ARG's EV/EBIT is ranked lower than
70% of the 890 Companies
in the Global Chemicals industry.

( Industry Median: 12.76 vs. ARG: 21.87 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Airgas Inc's enterprise value for the quarter that ended in Mar. 2016 was $12,821 Mil. Airgas Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $592 Mil. Airgas Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 4.62%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=12940.230/591.817
=21.87

Airgas Inc's current Enterprise Value is $12,940 Mil.
Airgas Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 152.578 (Jun. 2015 ) + 170.145 (Sep. 2015 ) + 125.587 (Dec. 2015 ) + 143.507 (Mar. 2016 ) = $592 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. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=591.817/12821.1056
=4.62 %

Airgas Inc's Enterprise Value for the quarter that ended in Mar. 2016 was $12,821 Mil.
Airgas Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 152.578 (Jun. 2015 ) + 170.145 (Sep. 2015 ) + 125.587 (Dec. 2015 ) + 143.507 (Mar. 2016 ) = $592 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.

Airgas Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
ev2ebit 14.8511.458.6417.7914.9615.9115.9216.4515.8421.66

Airgas Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 16.5416.4516.7716.8017.1615.8415.8814.2720.9921.66
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