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American Express Co (NYSE:AXP)
EV/EBIT
10.33 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, American Express Co's enterprise value is $86,670 Mil. American Express Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $8,389 Mil. Therefore, American Express Co's EV/EBIT ratio for today is 10.33.

AXP' s EV/EBIT Range Over the Past 10 Years
Min: -75.7   Max: 35.8
Current: 10.34

-75.7
35.8

During the past 13 years, the highest EV/EBIT Ratio of American Express Co was 35.80. The lowest was -75.70. And the median was 15.90.

AXP's EV/EBIT is ranked higher than
66% of the 281 Companies
in the Global Credit Services industry.

( Industry Median: 17.44 vs. AXP: 10.34 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). American Express Co's enterprise value for the quarter that ended in Sep. 2016 was $79,960 Mil. American Express Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $8,389 Mil. American Express Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 10.49%.


Definition

American Express Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=86669.730/8389
=10.33

American Express Co's current Enterprise Value is $86,670 Mil.
American Express Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 1454 (Dec. 2015 ) + 2184 (Mar. 2016 ) + 3016 (Jun. 2016 ) + 1735 (Sep. 2016 ) = $8,389 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).

American Express Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=8389/79959.68
=10.49 %

American Express Co's Enterprise Value for the quarter that ended in Sep. 2016 was $79,960 Mil.
American Express Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 1454 (Dec. 2015 ) + 2184 (Mar. 2016 ) + 3016 (Jun. 2016 ) + 1735 (Sep. 2016 ) = $8,389 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.

American Express Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 23.7621.7823.64-39.8817.5813.5016.0517.4214.9412.28

American Express Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 16.3514.6814.9412.4012.6512.0412.2810.728.789.53
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