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GuruFocus has detected 8 Warning Signs with Charter Communications Inc $CHTR.
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Charter Communications Inc (NAS:CHTR)
EV-to-EBIT
50.80 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Charter Communications Inc's enterprise value is $170,429 Mil. Charter Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $3,355 Mil. Therefore, Charter Communications Inc's EV/EBIT ratio for today is 50.80.

CHTR' s EV-to-EBIT Range Over the Past 10 Years
Min: -14.1   Max: 79
Current: 50.8

-14.1
79

During the past 13 years, the highest EV/EBIT Ratio of Charter Communications Inc was 79.00. The lowest was -14.10. And the median was 28.85.

CHTR's EV-to-EBIT is ranked lower than
87% of the 520 Companies
in the Global Pay TV industry.

( Industry Median: 15.15 vs. CHTR: 50.80 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Charter Communications Inc's enterprise value for the quarter that ended in Dec. 2016 was $147,832 Mil. Charter Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $3,355 Mil. Charter Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 2.27%.


Definition

Charter Communications Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=170428.726/3355
=50.80

Charter Communications Inc's current Enterprise Value is $170,429 Mil.
Charter Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 302 (Mar. 2016 ) + 690 (Jun. 2016 ) + 924 (Sep. 2016 ) + 1439 (Dec. 2016 ) = $3,355 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).

Charter Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=3355/147831.896
=2.27 %

Charter Communications Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $147,832 Mil.
Charter Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 302 (Mar. 2016 ) + 690 (Jun. 2016 ) + 924 (Sep. 2016 ) + 1439 (Dec. 2016 ) = $3,355 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.

Charter Communications Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 0.000.00-8.5417.2620.2222.8231.4440.7350.5444.06

Charter Communications Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 36.3840.7343.4532.6349.6450.5450.2284.6364.6344.06
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