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CVS Health Corp (NYSE:CVS)
EV/EBIT
15.25 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, CVS Health Corp's enterprise value is $128,980 Mil. CVS Health Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $8,457 Mil. Therefore, CVS Health Corp's EV/EBIT ratio for today is 15.25.

CVS' s 10-Year EV/EBIT Range
Min: 7.6   Max: 20.4
Current: 15.25

7.6
20.4

During the past 13 years, the highest EV/EBIT Ratio of CVS Health Corp was 20.40. The lowest was 7.60. And the median was 11.60.

CVS's EV/EBITis ranked lower than
55% of the 20 Companies
in the Global Health Care Plans industry.

( Industry Median: 11.08 vs. CVS: 15.25 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). CVS Health Corp's enterprise value for the quarter that ended in Jun. 2015 was $128,478 Mil. CVS Health Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $8,457 Mil. CVS Health Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 6.58%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=128979.833/8457
=15.25

CVS Health Corp's current Enterprise Value is $128,980 Mil.
CVS Health Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1730 (Sep. 2014 ) + 2325 (Dec. 2014 ) + 2135 (Mar. 2015 ) + 2267 (Jun. 2015 ) = $8,457 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 Health Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=8457/128478.44
=6.58 %

CVS Health Corp's Enterprise Value for the quarter that ended in Jun. 2015 was $128,478 Mil.
CVS Health Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1730 (Sep. 2014 ) + 2325 (Dec. 2014 ) + 2135 (Mar. 2015 ) + 2267 (Jun. 2015 ) = $8,457 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.

CVS Health Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 11.5712.3613.928.558.529.089.709.8811.6414.50

CVS Health Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 10.5410.549.8811.6411.7511.5012.6714.5015.1715.19
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