Switch to:
Check Point Software Technologies Ltd (NAS:CHKP)
EV/EBIT
16.07 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Check Point Software Technologies Ltd's enterprise value is $13,221 Mil. Check Point Software Technologies Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $823 Mil. Therefore, Check Point Software Technologies Ltd's EV/EBIT ratio for today is 16.07.

CHKP' s 10-Year EV/EBIT Range
Min: 8.5   Max: 21.3
Current: 16.08

8.5
21.3

During the past 13 years, the highest EV/EBIT Ratio of Check Point Software Technologies Ltd was 21.30. The lowest was 8.50. And the median was 14.70.

CHKP's EV/EBITis ranked higher than
53% of the 1175 Companies
in the Global Software - Application industry.

( Industry Median: 16.64 vs. CHKP: 16.08 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Check Point Software Technologies Ltd's enterprise value for the quarter that ended in Jun. 2015 was $13,501 Mil. Check Point Software Technologies Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $823 Mil. Check Point Software Technologies Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 6.09%.


Definition

Check Point Software Technologies Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=13220.708/822.728
=16.07

Check Point Software Technologies Ltd's current Enterprise Value is $13,221 Mil.
Check Point Software Technologies Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 197.381 (Sep. 2014 ) + 229.254 (Dec. 2014 ) + 197.015 (Mar. 2015 ) + 199.078 (Jun. 2015 ) = $823 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).

Check Point Software Technologies Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=822.728/13500.783
=6.09 %

Check Point Software Technologies Ltd's Enterprise Value for the quarter that ended in Jun. 2015 was $13,501 Mil.
Check Point Software Technologies Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 197.381 (Sep. 2014 ) + 229.254 (Dec. 2014 ) + 197.015 (Mar. 2015 ) + 199.078 (Jun. 2015 ) = $823 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Check Point Software Technologies Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 10.7314.0314.408.6214.9415.9814.7310.6914.7616.39

Check Point Software Technologies Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 10.4511.3112.7014.7615.6615.1314.6116.3917.3316.41
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK