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Cerner Corporation (NAS:CERN)
EV/EBIT
30.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Cerner Corporation's enterprise value is $17,860 Mil. Cerner Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $576 Mil. Therefore, Cerner Corporation's EV/EBIT ratio for today is 30.30.

CERN' s 10-Year EV/EBIT Range
Min: 9.4   Max: 36.8
Current: 30.3

9.4
36.8

During the past 13 years, the highest EV/EBIT Ratio of Cerner Corporation was 36.80. The lowest was 9.40. And the median was 22.20.

CERN's EV/EBITis ranked lower than
58% of the 1278 Companies
in the Global Health Information Services industry.

( Industry Median: 17.39 vs. CERN: 30.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cerner Corporation's enterprise value for the quarter that ended in Dec. 2013 was $18,394 Mil. Cerner Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $576 Mil. Cerner Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 3.13%.


Definition

Cerner Corporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=17859.532/576.012
=31.01

Cerner Corporation's current Enterprise Value is $17,860 Mil.
Cerner Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 156.569 (Mar. 2013 ) + 166.456 (Jun. 2013 ) + 169.238 (Sep. 2013 ) + 83.749 (Dec. 2013 ) = $576 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).

Cerner 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 )
=576.012/18394.0758
=3.13 %

Cerner Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $18,394 Mil.
Cerner Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 156.569 (Mar. 2013 ) + 166.456 (Jun. 2013 ) + 169.238 (Sep. 2013 ) + 83.749 (Dec. 2013 ) = $576 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.

Cerner Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 16.8124.6020.8021.2710.5721.5520.7121.1821.8631.93

Cerner Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 25.8221.1824.8025.5822.6521.8625.7324.8626.4231.93
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