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Babcock & Wilcox Co (NYSE:BWC)
EV/EBIT
6.43 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Babcock & Wilcox Co's enterprise value is $2,974 Mil. Babcock & Wilcox Co's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $466 Mil. Therefore, Babcock & Wilcox Co's EV/EBIT ratio for today is 6.43.

BWC' s 10-Year EV/EBIT Range
Min: 6.1   Max: 15.3
Current: 6.43

6.1
15.3

During the past 6 years, the highest EV/EBIT Ratio of Babcock & Wilcox Co was 15.30. The lowest was 6.10. And the median was 8.75.

BWC's EV/EBITis ranked higher than
92% of the 1637 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.75 vs. BWC: 6.43 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Babcock & Wilcox Co's enterprise value for the quarter that ended in Jun. 2014 was $3,506 Mil. Babcock & Wilcox Co's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $466 Mil. Babcock & Wilcox Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 13.30%.


Definition

Babcock & Wilcox Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=2973.509/466.201
=6.38

Babcock & Wilcox Co's current Enterprise Value is $2,974 Mil.
Babcock & Wilcox Co's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 82.121 (Sep. 2013 ) + 295.322 (Dec. 2013 ) + 53.64 (Mar. 2014 ) + 35.118 (Jun. 2014 ) = $466 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).

Babcock & Wilcox Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jun. 2014 )
=466.201/3506.086
=13.30 %

Babcock & Wilcox Co's Enterprise Value for the quarter that ended in Jun. 2014 was $3,506 Mil.
Babcock & Wilcox Co's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 82.121 (Sep. 2013 ) + 295.322 (Dec. 2013 ) + 53.64 (Mar. 2014 ) + 35.118 (Jun. 2014 ) = $466 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.

Babcock & Wilcox Co Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.000.000.000.000.009.878.837.416.42

Babcock & Wilcox Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 8.637.557.287.418.468.709.586.426.597.52
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