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GuruFocus has detected 4 Warning Signs with Check Point Software Technologies Ltd $CHKP.
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Check Point Software Technologies Ltd (NAS:CHKP)
EV/EBIT
18.51 (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 $15,731 Mil. Check Point Software Technologies Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $850 Mil. Therefore, Check Point Software Technologies Ltd's EV/EBIT ratio for today is 18.51.

CHKP' s EV/EBIT Range Over the Past 10 Years
Min: 8.7   Max: 20.03
Current: 20.03

8.7
20.03

During the past 13 years, the highest EV/EBIT Ratio of Check Point Software Technologies Ltd was 20.03. The lowest was 8.70. And the median was 14.90.

CHKP's EV/EBIT is ranked higher than
51% of the 1184 Companies
in the Global Software - Application industry.

( Industry Median: 17.51 vs. CHKP: 20.03 )

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 Sep. 2016 was $12,110 Mil. Check Point Software Technologies Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $850 Mil. Check Point Software Technologies Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 7.02%.


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)
=15730.693/849.85
=18.51

Check Point Software Technologies Ltd's current Enterprise Value is $15,731 Mil.
Check Point Software Technologies Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 238.99 (Dec. 2015 ) + 202.221 (Mar. 2016 ) + 202.151 (Jun. 2016 ) + 206.488 (Sep. 2016 ) = $850 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).

Check Point Software Technologies Ltd'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 )
=849.85/12109.53302
=7.02 %

Check Point Software Technologies Ltd's Enterprise Value for the quarter that ended in Sep. 2016 was $12,110 Mil.
Check Point Software Technologies Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 238.99 (Dec. 2015 ) + 202.221 (Mar. 2016 ) + 202.151 (Jun. 2016 ) + 206.488 (Sep. 2016 ) = $850 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.

Check Point Software Technologies Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 14.408.6214.9415.9814.7310.6914.7616.3915.4315.56

Check Point Software Technologies Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 14.6116.3917.3316.4115.1515.4316.7014.8614.250.00
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