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GuruFocus has detected 3 Warning Signs with athenahealth Inc $ATHN.
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athenahealth Inc (NAS:ATHN)
EV-to-EBIT
165.80 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, athenahealth Inc's enterprise value is $4,460 Mil. athenahealth Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $27 Mil. Therefore, athenahealth Inc's EV/EBIT ratio for today is 165.80.

ATHN' s EV-to-EBIT Range Over the Past 10 Years
Min: -3787.4   Max: 11636.3
Current: 165.82

-3787.4
11636.3

During the past 13 years, the highest EV/EBIT Ratio of athenahealth Inc was 11636.30. The lowest was -3787.40. And the median was 109.05.

ATHN's EV-to-EBIT is ranked lower than
95% of the 1205 Companies
in the Global Health Information Services industry.

( Industry Median: 17.49 vs. ATHN: 165.82 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). athenahealth Inc's enterprise value for the quarter that ended in Dec. 2016 was $4,294 Mil. athenahealth Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $27 Mil. athenahealth Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 0.63%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4459.915/26.9
=165.80

athenahealth Inc's current Enterprise Value is $4,460 Mil.
athenahealth Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 0.366 (Mar. 2016 ) + -1.261 (Jun. 2016 ) + 15.161 (Sep. 2016 ) + 12.634 (Dec. 2016 ) = $27 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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).

athenahealth Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=26.9/4293.7082
=0.63 %

athenahealth Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $4,294 Mil.
athenahealth Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 0.366 (Mar. 2016 ) + -1.261 (Jun. 2016 ) + 15.161 (Sep. 2016 ) + 12.634 (Dec. 2016 ) = $27 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

athenahealth Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 247.73132.7276.6955.4348.7770.35843.925,272.38261.09159.62

athenahealth Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 944.165,272.3811,010.48220.25162.61261.09153.76337.10244.99159.62
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