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Cummins Inc (NYSE:CMI)
EV/EBIT
8.48 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Cummins Inc's enterprise value is $22,005 Mil. Cummins Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $2,596 Mil. Therefore, Cummins Inc's EV/EBIT ratio for today is 8.48.

CMI' s 10-Year EV/EBIT Range
Min: 2.9   Max: 24.4
Current: 8.47

2.9
24.4

During the past 13 years, the highest EV/EBIT Ratio of Cummins Inc was 24.40. The lowest was 2.90. And the median was 9.40.

CMI's EV/EBITis ranked higher than
73% of the 1355 Companies
in the Global Diversified Industrials industry.

( Industry Median: 13.44 vs. CMI: 8.47 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cummins Inc's enterprise value for the quarter that ended in Jun. 2015 was $23,625 Mil. Cummins Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $2,596 Mil. Cummins Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 10.99%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=22004.737/2596
=8.48

Cummins Inc's current Enterprise Value is $22,005 Mil.
Cummins Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 684 (Sep. 2014 ) + 629 (Dec. 2014 ) + 562 (Mar. 2015 ) + 721 (Jun. 2015 ) = $2,596 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).

Cummins Inc'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 )
=2596/23625.0935
=10.99 %

Cummins Inc's Enterprise Value for the quarter that ended in Jun. 2015 was $23,625 Mil.
Cummins Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 684 (Sep. 2014 ) + 629 (Dec. 2014 ) + 562 (Mar. 2015 ) + 721 (Jun. 2015 ) = $2,596 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.

Cummins Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 5.435.3910.714.7813.3812.985.998.6211.8410.37

Cummins Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 10.329.8111.7611.8412.0612.279.7610.379.919.10
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