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Cognizant Technology Solutions Corp (NAS:CTSH)
EV/EBIT
14.93 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Cognizant Technology Solutions Corp's enterprise value is $31,398 Mil. Cognizant Technology Solutions Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was $2,103 Mil. Therefore, Cognizant Technology Solutions Corp's EV/EBIT ratio for today is 14.93.

CTSH' s EV/EBIT Range Over the Past 10 Years
Min: 10.9   Max: 75
Current: 17.86

10.9
75

During the past 13 years, the highest EV/EBIT Ratio of Cognizant Technology Solutions Corp was 75.00. The lowest was 10.90. And the median was 24.40.

CTSH's EV/EBIT is ranked lower than
54% of the 1755 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. CTSH: 17.86 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cognizant Technology Solutions Corp's enterprise value for the quarter that ended in Sep. 2015 was $34,966 Mil. Cognizant Technology Solutions Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was $2,103 Mil. Cognizant Technology Solutions Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2015 was 6.01%.


Definition

Cognizant Technology Solutions Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=31397.570/2103.199
=14.93

Cognizant Technology Solutions Corp's current Enterprise Value is $31,398 Mil.
Cognizant Technology Solutions Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was 487.399 (Dec. 2014 ) + 515.6 (Mar. 2015 ) + 552.9 (Jun. 2015 ) + 547.3 (Sep. 2015 ) = $2,103 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).

Cognizant Technology Solutions Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2015 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2015 )
=2103.199/34966.18
=6.01 %

Cognizant Technology Solutions Corp's Enterprise Value for the quarter that ended in Sep. 2015 was $34,966 Mil.
Cognizant Technology Solutions Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was 487.399 (Dec. 2014 ) + 515.6 (Mar. 2015 ) + 552.9 (Jun. 2015 ) + 547.3 (Sep. 2015 ) = $2,103 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.

Cognizant Technology Solutions Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 52.0056.6733.0612.0226.7432.4920.6019.3221.9020.82

Cognizant Technology Solutions Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
ev2ebit 13.9117.4521.9020.1318.1315.7320.8224.1822.6621.64
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