Switch to:
Cognizant Technology Solutions Corp (NAS:CTSH)
EV/EBIT
14.03 (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 $31,716 Mil. Cognizant Technology Solutions Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $2,260 Mil. Therefore, Cognizant Technology Solutions Corp's EV/EBIT ratio for today is 14.03.

CTSH' s EV/EBIT Range Over the Past 10 Years
Min: 8.5   Max: 52.5
Current: 14.03

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 17.90.

CTSH's EV/EBIT is ranked higher than
54% of the 1179 Companies
in the Global Information Technology Services industry.

( Industry Median: 15.39 vs. CTSH: 14.03 )

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 Mar. 2016 was $34,578 Mil. Cognizant Technology Solutions Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $2,260 Mil. Cognizant Technology Solutions Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 6.54%.


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)
=31715.692/2259.9
=14.03

Cognizant Technology Solutions Corp's current Enterprise Value is $31,716 Mil.
Cognizant Technology Solutions Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 552.9 (Jun. 2015 ) + 547.3 (Sep. 2015 ) + 565.5 (Dec. 2015 ) + 594.2 (Mar. 2016 ) = $2,260 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 Mar. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=2259.9/34577.94
=6.54 %

Cognizant Technology Solutions Corp's Enterprise Value for the quarter that ended in Mar. 2016 was $34,578 Mil.
Cognizant Technology Solutions Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 552.9 (Jun. 2015 ) + 547.3 (Sep. 2015 ) + 565.5 (Dec. 2015 ) + 594.2 (Mar. 2016 ) = $2,260 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 39.9623.868.7019.5323.2715.0114.0016.0515.5515.08

Cognizant Technology Solutions Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 16.0515.0813.7612.0015.5518.1917.1916.6315.0815.30
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK