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GuruFocus has detected 4 Warning Signs with Cognizant Technology Solutions Corp $CTSH.
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Cognizant Technology Solutions Corp (NAS:CTSH)
EV-to-EBIT
13.38 (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 $31,808 Mil. Cognizant Technology Solutions Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $2,377 Mil. Therefore, Cognizant Technology Solutions Corp's EV/EBIT ratio for today is 13.38.

CTSH' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.5   Max: 52.5
Current: 13.39

8.5
52.5

During the past 13 years, the highest EV/EBIT Ratio of Cognizant Technology Solutions Corp was 52.50. The lowest was 8.50. And the median was 16.95.

CTSH's EV-to-EBIT is ranked higher than
67% of the 1323 Companies
in the Global Information Technology Services industry.

( Industry Median: 18.17 vs. CTSH: 13.39 )

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. 2016 was $24,979 Mil. Cognizant Technology Solutions Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $2,377 Mil. Cognizant Technology Solutions Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 9.51%.


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)
=31807.922/2376.7
=13.38

Cognizant Technology Solutions Corp's current Enterprise Value is $31,808 Mil.
Cognizant Technology Solutions Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 565.5 (Dec. 2015 ) + 594.2 (Mar. 2016 ) + 599.2 (Jun. 2016 ) + 617.8 (Sep. 2016 ) = $2,377 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).

Cognizant Technology Solutions Corp'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 )
=2376.7/24978.886
=9.51 %

Cognizant Technology Solutions Corp's Enterprise Value for the quarter that ended in Sep. 2016 was $24,979 Mil.
Cognizant Technology Solutions Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 565.5 (Dec. 2015 ) + 594.2 (Mar. 2016 ) + 599.2 (Jun. 2016 ) + 617.8 (Sep. 2016 ) = $2,377 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.

Cognizant Technology Solutions Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 23.868.7019.5323.2715.0114.0016.0515.5515.0812.51

Cognizant Technology Solutions Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 12.0015.5518.1917.1916.6315.0815.3013.5210.5112.51
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