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CVS Caremark Corp (NYSE:CVS)
EV/EBIT
12.22 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, CVS Caremark Corp's enterprise value is $100,396 Mil. CVS Caremark Corp's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $8,362 Mil. Therefore, CVS Caremark Corp's EV/EBIT ratio for today is 12.22.

CVS' s 10-Year EV/EBIT Range
Min: 7.6   Max: 20.4
Current: 12.22

7.6
20.4

During the past 13 years, the highest EV/EBIT Ratio of CVS Caremark Corp was 20.40. The lowest was 7.60. And the median was 10.70.

CVS's EV/EBITis ranked higher than
81% of the 517 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 15.68 vs. CVS: 12.22 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). CVS Caremark Corp's enterprise value for the quarter that ended in Mar. 2014 was $98,375 Mil. CVS Caremark Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $8,362 Mil. CVS Caremark Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 8.50%.


Definition

CVS Caremark Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=100396.104/8362
=12.01

CVS Caremark Corp's current Enterprise Value is $100,396 Mil.
CVS Caremark Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 1968 (Jun. 2013 ) + 2161 (Sep. 2013 ) + 2209 (Dec. 2013 ) + 2024 (Mar. 2014 ) = $8,362 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).

CVS Caremark Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=8362/98374.78
=8.50 %

CVS Caremark Corp's Enterprise Value for the quarter that ended in Mar. 2014 was $98,375 Mil.
CVS Caremark Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 1968 (Jun. 2013 ) + 2161 (Sep. 2013 ) + 2209 (Dec. 2013 ) + 2024 (Mar. 2014 ) = $8,362 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.

CVS Caremark Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 14.2411.5912.3714.258.588.549.119.729.4311.66

CVS Caremark Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebit 9.7210.0810.0710.049.4310.0810.109.4911.6611.76
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