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Cerner Corp (NAS:CERN)
EV/EBIT
31.26 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Cerner Corp's enterprise value is $19,715 Mil. Cerner Corp's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $623 Mil. Therefore, Cerner Corp's EV/EBIT ratio for today is 31.26.

CERN' s 10-Year EV/EBIT Range
Min: 9.4   Max: 36.6
Current: 31.26

9.4
36.6

During the past 13 years, the highest EV/EBIT Ratio of Cerner Corp was 36.60. The lowest was 9.40. And the median was 22.60.

CERN's EV/EBITis ranked higher than
70% of the 1856 Companies
in the Global Health Information Services industry.

( Industry Median: 33.78 vs. CERN: 31.26 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cerner Corp's enterprise value for the quarter that ended in Jun. 2014 was $16,712 Mil. Cerner Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $623 Mil. Cerner Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 3.73%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=19714.895/622.623
=31.66

Cerner Corp's current Enterprise Value is $19,715 Mil.
Cerner Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 169.238 (Sep. 2013 ) + 83.749 (Dec. 2013 ) + 178.003 (Mar. 2014 ) + 191.633 (Jun. 2014 ) = $623 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 Corp'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 )
=622.623/16711.8719
=3.73 %

Cerner Corp's Enterprise Value for the quarter that ended in Jun. 2014 was $16,712 Mil.
Cerner Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 169.238 (Sep. 2013 ) + 83.749 (Dec. 2013 ) + 178.003 (Mar. 2014 ) + 191.633 (Jun. 2014 ) = $623 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 Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 16.8124.6020.8021.2710.5721.5520.7121.1821.8631.93

Cerner Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 24.8025.5822.6521.8625.7324.8626.4231.9330.8326.84
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