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GuruFocus has detected 10 Warning Signs with BGC Partners Inc $BGCP.
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BGC Partners Inc (NAS:BGCP)
EV-to-EBIT
8.11 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, BGC Partners Inc's enterprise value is $3,812 Mil. BGC Partners Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $470 Mil. Therefore, BGC Partners Inc's EV/EBIT ratio for today is 8.11.

BGCP' s EV-to-EBIT Range Over the Past 10 Years
Min: -61.8   Max: 89.2
Current: 15.15

-61.8
89.2

During the past 13 years, the highest EV/EBIT Ratio of BGC Partners Inc was 89.20. The lowest was -61.80. And the median was 12.50.

BGCP's EV-to-EBIT is ranked lower than
51% of the 492 Companies
in the Global Capital Markets industry.

( Industry Median: 14.85 vs. BGCP: 15.15 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). BGC Partners Inc's enterprise value for the quarter that ended in Sep. 2016 was $2,860 Mil. BGC Partners Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $470 Mil. BGC Partners Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 16.44%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3812.436/470.243
=8.11

BGC Partners Inc's current Enterprise Value is $3,812 Mil.
BGC Partners Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 270.007 (Dec. 2015 ) + 34.589 (Mar. 2016 ) + 45.735 (Jun. 2016 ) + 119.912 (Sep. 2016 ) = $470 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).

BGC Partners Inc'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 )
=470.243/2860.007
=16.44 %

BGC Partners Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $2,860 Mil.
BGC Partners Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 270.007 (Dec. 2015 ) + 34.589 (Mar. 2016 ) + 45.735 (Jun. 2016 ) + 119.912 (Sep. 2016 ) = $470 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.

BGC Partners Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 11.122.182.767.7910.635.783.8257.876.0713.65

BGC Partners Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 17.1857.8743.3235.9320.546.076.656.536.0813.65
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