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Bank of America Corporation (NYSE:BAC)
EV/EBIT
30.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Bank of America Corporation's enterprise value is $479,700 Mil. Bank of America Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $16,172 Mil. Therefore, Bank of America Corporation's EV/EBIT ratio for today is 30.30.

BAC' s 10-Year EV/EBIT Range
Min: 13.1   Max: 249.3
Current: 30.3

13.1
249.3

During the past 13 years, the highest EV/EBIT Ratio of Bank of America Corporation was 249.30. The lowest was 13.10. And the median was 22.00.

BAC's EV/EBITis ranked lower than
61% of the 1447 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 15.51 vs. BAC: 30.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Bank of America Corporation's enterprise value for the quarter that ended in Dec. 2013 was $332,235 Mil. Bank of America Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $16,172 Mil. Bank of America Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 4.87%.


Definition

Bank of America Corporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=479700.385/16172
=29.66

Bank of America Corporation's current Enterprise Value is $479,700 Mil.
Bank of America Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1984 (Mar. 2013 ) + 5498 (Jun. 2013 ) + 4845 (Sep. 2013 ) + 3845 (Dec. 2013 ) = $16,172 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).

Bank of America Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=16172/332234.6441
=4.87 %

Bank of America Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $332,235 Mil.
Bank of America Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1984 (Mar. 2013 ) + 5498 (Jun. 2013 ) + 4845 (Sep. 2013 ) + 3845 (Dec. 2013 ) = $16,172 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.

Bank of America Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 16.1916.1315.4025.51113.33154.94242.290.00104.4220.54

Bank of America Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 0.000.000.0023.6044.46104.4282.7052.2730.8120.54
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