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Airgas Inc (NYSE:ARG)
EV/EBIT
15.83 (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 $10,262 Mil. Airgas Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $648 Mil. Therefore, Airgas Inc's EV/EBIT ratio for today is 15.83.

ARG' s 10-Year EV/EBIT Range
Min: 7.5   Max: 18
Current: 15.76

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 15.00.

ARG's EV/EBITis ranked lower than
51% of the 774 Companies
in the Global Chemicals industry.

( Industry Median: 15.48 vs. ARG: 15.76 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Airgas Inc's enterprise value for the quarter that ended in Mar. 2015 was $10,270 Mil. Airgas Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $648 Mil. Airgas Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 6.31%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=10261.751/648.312
=15.83

Airgas Inc's current Enterprise Value is $10,262 Mil.
Airgas Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 155.081 (Jun. 2014 ) + 175.781 (Sep. 2014 ) + 162.886 (Dec. 2014 ) + 154.564 (Mar. 2015 ) = $648 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. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2015 )
=648.312/10270.3686
=6.31 %

Airgas Inc's Enterprise Value for the quarter that ended in Mar. 2015 was $10,270 Mil.
Airgas Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 155.081 (Jun. 2014 ) + 175.781 (Sep. 2014 ) + 162.886 (Dec. 2014 ) + 154.564 (Mar. 2015 ) = $648 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ev2ebit 14.5714.8511.458.6417.7914.9615.9115.9216.4515.84

Airgas Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 15.5415.9215.3215.8716.5416.4516.7716.8017.1015.84
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