Switch to:
GuruFocus has detected 5 Warning Signs with Baker Hughes Inc $BHI.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Baker Hughes Inc (NYSE:BHI)
EV/EBIT
-9.16 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Baker Hughes Inc's enterprise value is $25,886 Mil. Baker Hughes Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-2,827 Mil. Therefore, Baker Hughes Inc's EV/EBIT ratio for today is -9.16.

During the past 13 years, the highest EV/EBIT Ratio of Baker Hughes Inc was 40.20. The lowest was -6719.30. And the median was 10.90.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Baker Hughes Inc's enterprise value for the quarter that ended in Sep. 2016 was $20,713 Mil. Baker Hughes Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $-2,827 Mil. Baker Hughes Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was -13.65%.


Definition

Baker Hughes Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=25885.861/-2827
=-9.16

Baker Hughes Inc's current Enterprise Value is $25,886 Mil.
Baker Hughes Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -1377 (Dec. 2015 ) + -559 (Mar. 2016 ) + -570 (Jun. 2016 ) + -321 (Sep. 2016 ) = $-2,827 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).

Baker Hughes 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 )
=-2827/20712.81
=-13.65 %

Baker Hughes Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $20,713 Mil.
Baker Hughes Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -1377 (Dec. 2015 ) + -559 (Mar. 2016 ) + -570 (Jun. 2016 ) + -321 (Sep. 2016 ) = $-2,827 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.

Baker Hughes Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 6.2711.034.2517.5319.109.3510.0914.059.39-9.17

Baker Hughes Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 16.0613.569.3919.6938.34-6,198.53-9.17-9.69-7.10-7.33
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK