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CA Inc (NAS:CA)
EV/EBIT
7.88 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, CA Inc's enterprise value is $10,847 Mil. CA Inc's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $1,386 Mil. Therefore, CA Inc's EV/EBIT ratio for today is 7.88.

CA' s 10-Year EV/EBIT Range
Min: 6.1   Max: 84.4
Current: 7.88

6.1
84.4

During the past 13 years, the highest EV/EBIT Ratio of CA Inc was 84.40. The lowest was 6.10. And the median was 10.30.

CA's EV/EBITis ranked higher than
91% of the 1856 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 33.78 vs. CA: 7.88 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). CA Inc's enterprise value for the quarter that ended in Jun. 2014 was $11,244 Mil. CA Inc's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $1,386 Mil. CA Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 12.33%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=10846.819/1386
=7.83

CA Inc's current Enterprise Value is $10,847 Mil.
CA Inc's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 359 (Sep. 2013 ) + 334 (Dec. 2013 ) + 380 (Mar. 2014 ) + 313 (Jun. 2014 ) = $1,386 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).

CA Inc'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 )
=1386/11244.0956
=12.33 %

CA Inc's Enterprise Value for the quarter that ended in Jun. 2014 was $11,244 Mil.
CA Inc's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 359 (Sep. 2013 ) + 334 (Dec. 2013 ) + 380 (Mar. 2014 ) + 313 (Jun. 2014 ) = $1,386 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.

CA Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebit 43.4071.5340.8113.187.398.898.438.267.369.59

CA Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 8.268.087.506.247.3610.0710.2611.859.598.11
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