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GuruFocus has detected 2 Warning Signs with Anglogold Ashanti Ltd $AU.
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Anglogold Ashanti Ltd (NYSE:AU)
EV-to-EBIT
8.46 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Anglogold Ashanti Ltd's enterprise value is $6,809 Mil. Anglogold Ashanti Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $805 Mil. Therefore, Anglogold Ashanti Ltd's EV/EBIT ratio for today is 8.46.

AU' s EV-to-EBIT Range Over the Past 10 Years
Min: -107.4   Max: 194.9
Current: 7.87

-107.4
194.9

During the past 13 years, the highest EV/EBIT Ratio of Anglogold Ashanti Ltd was 194.90. The lowest was -107.40. And the median was 8.30.

AU's EV-to-EBIT is ranked higher than
58% of the 904 Companies
in the Global Gold industry.

( Industry Median: 20.02 vs. AU: 7.87 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Anglogold Ashanti Ltd's enterprise value for the quarter that ended in Dec. 2016 was $6,287 Mil. Anglogold Ashanti Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $805 Mil. Anglogold Ashanti Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 12.80%.


Definition

Anglogold Ashanti Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=6809.480/805
=8.46

Anglogold Ashanti Ltd's current Enterprise Value is $6,809 Mil.
Anglogold Ashanti Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 39 (Sep. 2015 ) + 219 (Dec. 2015 ) + -21 (Jun. 2016 ) + 568 (Dec. 2016 ) = $805 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).

Anglogold Ashanti Ltd'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 )
=805/6287.3922
=12.80 %

Anglogold Ashanti Ltd's Enterprise Value for the quarter that ended in Dec. 2016 was $6,287 Mil.
Anglogold Ashanti Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 39 (Sep. 2015 ) + 219 (Dec. 2015 ) + -21 (Jun. 2016 ) + 568 (Dec. 2016 ) = $805 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.

Anglogold Ashanti Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -26.97-37.21-22.1637.758.4811.02-2.6415.6011.7111.92

Anglogold Ashanti Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Jun16Dec16
ev2ebit -3.30-41.97-59.9215.6018.5815.8220.2911.7140.7611.92
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