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Chesapeake Energy Corp (NYSE:CHK)
EV/EBIT
16.47 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Chesapeake Energy Corp's enterprise value is $33,392 Mil. Chesapeake Energy Corp's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $2,028 Mil. Therefore, Chesapeake Energy Corp's EV/EBIT ratio for today is 16.47.

CHK' s 10-Year EV/EBIT Range
Min: 6.4   Max: 25
Current: 16.47

6.4
25

During the past 13 years, the highest EV/EBIT Ratio of Chesapeake Energy Corp was 25.00. The lowest was 6.40. And the median was 11.00.

CHK's EV/EBITis ranked higher than
90% of the 1121 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 448.75 vs. CHK: 16.47 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Chesapeake Energy Corp's enterprise value for the quarter that ended in Jun. 2014 was $34,784 Mil. Chesapeake Energy Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $2,028 Mil. Chesapeake Energy Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 5.83%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=33392.432/2028
=16.47

Chesapeake Energy Corp's current Enterprise Value is $33,392 Mil.
Chesapeake Energy Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 436 (Sep. 2013 ) + 249 (Dec. 2013 ) + 733 (Mar. 2014 ) + 610 (Jun. 2014 ) = $2,028 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).

Chesapeake Energy 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 )
=2028/34784.04056
=5.83 %

Chesapeake Energy Corp's Enterprise Value for the quarter that ended in Jun. 2014 was $34,784 Mil.
Chesapeake Energy Corp's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 436 (Sep. 2013 ) + 249 (Dec. 2013 ) + 733 (Mar. 2014 ) + 610 (Jun. 2014 ) = $2,028 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.

Chesapeake Energy Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 7.839.786.2511.1313.760.0011.289.790.0016.61

Chesapeake Energy Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 10.1410.220.000.000.000.0012.9116.6112.8617.15
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