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Avago Technologies Ltd (NAS:AVGO)
EV/EBIT
34.25 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Avago Technologies Ltd's enterprise value is $20,481 Mil. Avago Technologies Ltd's operating income for the trailing twelve months (TTM) ended in Jul. 2014 was $307 Mil. Therefore, Avago Technologies Ltd's EV/EBIT ratio for today is 34.25.

AVGO' s 10-Year EV/EBIT Range
Min: 10.7   Max: 91.8
Current: 34.25

10.7
91.8

During the past 7 years, the highest EV/EBIT Ratio of Avago Technologies Ltd was 91.80. The lowest was 10.70. And the median was 14.70.

AVGO's EV/EBITis ranked higher than
69% of the 1093 Companies
in the Global Semiconductors industry.

( Industry Median: 47.54 vs. AVGO: 34.25 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Avago Technologies Ltd's enterprise value for the quarter that ended in Jul. 2014 was $21,990 Mil. Avago Technologies Ltd's Operating Income for the trailing twelve months (TTM) ended in Jul. 2014 was $307 Mil. Avago Technologies Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2014 was 0.00%.


Definition

Avago Technologies Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=20480.614/307
=66.71

Avago Technologies Ltd's current Enterprise Value is $20,481 Mil.
Avago Technologies Ltd's Operating Income for the trailing twelve months (TTM) ended in Jul. 2014 was 170 (Oct. 2013 ) + 139 (Jan. 2014 ) + 160 (Apr. 2014 ) + -162 (Jul. 2014 ) = $307 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).

Avago Technologies Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jul. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jul. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jul. 2014 )
=307/21989.7772
=1.40 %

Avago Technologies Ltd's Enterprise Value for the quarter that ended in Jul. 2014 was $21,990 Mil.
Avago Technologies Ltd's Operating Income for the trailing twelve months (TTM) ended in Jul. 2014 was 170 (Oct. 2013 ) + 139 (Jan. 2014 ) + 160 (Apr. 2014 ) + -162 (Jul. 2014 ) = $307 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.

Avago Technologies Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebit 0.000.000.000.000.0076.1612.0012.8112.0518.52

Avago Technologies Ltd Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ev2ebit 13.0713.9712.0513.3512.0315.0518.5222.1023.930.00
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