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GuruFocus has detected 7 Warning Signs with CF Industries Holdings Inc $CF.
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CF Industries Holdings Inc (NYSE:CF)
EV/EBIT
42.03 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, CF Industries Holdings Inc's enterprise value is $15,710 Mil. CF Industries Holdings Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $374 Mil. Therefore, CF Industries Holdings Inc's EV/EBIT ratio for today is 42.03.

During the past 13 years, the highest EV/EBIT Ratio of CF Industries Holdings Inc was 40.20. The lowest was -542.30. And the median was 6.90.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). CF Industries Holdings Inc's enterprise value for the quarter that ended in Sep. 2016 was $12,782 Mil. CF Industries Holdings Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $374 Mil. CF Industries Holdings Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 2.92%.


Definition

CF Industries Holdings Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=15709.524/373.8
=42.03

CF Industries Holdings Inc's current Enterprise Value is $15,710 Mil.
CF Industries Holdings Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 138.8 (Dec. 2015 ) + 96 (Mar. 2016 ) + 239 (Jun. 2016 ) + -100 (Sep. 2016 ) = $374 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).

CF Industries Holdings 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 )
=373.8/12782.2285
=2.92 %

CF Industries Holdings Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $12,782 Mil.
CF Industries Holdings Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 138.8 (Dec. 2015 ) + 96 (Mar. 2016 ) + 239 (Jun. 2016 ) + -100 (Sep. 2016 ) = $374 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.

CF Industries Holdings Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 9.341.805.0912.293.684.266.246.8212.75-503.21

CF Industries Holdings Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 6.436.8210.7011.4810.4812.7514.4823.3634.20-503.21
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