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Cognizant Technology Solutions Corporation (NAS:CTSH)
EV/EBIT
15.90 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Cognizant Technology Solutions Corporation's enterprise value is $26,350 Mil. Cognizant Technology Solutions Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,678 Mil. Therefore, Cognizant Technology Solutions Corporation's EV/EBIT ratio for today is 15.90.

CTSH' s 10-Year EV/EBIT Range
Min: 8.5   Max: 56
Current: 15.9

8.5
56

During the past 13 years, the highest EV/EBIT Ratio of Cognizant Technology Solutions Corporation was 56.00. The lowest was 8.50. And the median was 22.50.

CTSH's EV/EBITis ranked higher than
65% of the 1286 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.42 vs. CTSH: 15.90 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Cognizant Technology Solutions Corporation's enterprise value for the quarter that ended in Dec. 2013 was $26,937 Mil. Cognizant Technology Solutions Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,678 Mil. Cognizant Technology Solutions Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 6.23%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=26350.385/1677.91
=15.70

Cognizant Technology Solutions Corporation's current Enterprise Value is $26,350 Mil.
Cognizant Technology Solutions Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 365.907 (Mar. 2013 ) + 426.803 (Jun. 2013 ) + 437.359 (Sep. 2013 ) + 447.841 (Dec. 2013 ) = $1,678 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 Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=1677.91/26936.8147
=6.23 %

Cognizant Technology Solutions Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $26,937 Mil.
Cognizant Technology Solutions Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 365.907 (Mar. 2013 ) + 426.803 (Jun. 2013 ) + 437.359 (Sep. 2013 ) + 447.841 (Dec. 2013 ) = $1,678 Mil.

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


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

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

Cognizant Technology Solutions Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 45.1836.7339.7524.078.7019.5223.2615.0114.2716.05

Cognizant Technology Solutions Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 15.5215.0117.6112.4813.9614.2714.5010.6213.5316.05
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