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Discover Financial Services (NYSE:DFS)
EV/EBIT
10.98 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Discover Financial Services's enterprise value is $43,752 Mil. Discover Financial Services's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $3,983 Mil. Therefore, Discover Financial Services's EV/EBIT ratio for today is 10.98.

DFS' s 10-Year EV/EBIT Range
Min: -2   Max: 18.4
Current: 10.98

-2
18.4

During the past 11 years, the highest EV/EBIT Ratio of Discover Financial Services was 18.40. The lowest was -2.00. And the median was 8.60.

DFS's EV/EBITis ranked higher than
88% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 20.38 vs. DFS: 10.98 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Discover Financial Services's enterprise value for the quarter that ended in Sep. 2014 was $43,586 Mil. Discover Financial Services's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $3,983 Mil. Discover Financial Services's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 9.14%.


Definition

Discover Financial Services's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=43752.000/3983
=10.98

Discover Financial Services's current Enterprise Value is $43,752 Mil.
Discover Financial Services's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 937 (Dec. 2013 ) + 1022 (Mar. 2014 ) + 1015 (Jun. 2014 ) + 1009 (Sep. 2014 ) = $3,983 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).

Discover Financial Services's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=3983/43585.53
=9.14 %

Discover Financial Services's Enterprise Value for the quarter that ended in Sep. 2014 was $43,586 Mil.
Discover Financial Services's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 937 (Dec. 2013 ) + 1022 (Mar. 2014 ) + 1015 (Jun. 2014 ) + 1009 (Sep. 2014 ) = $3,983 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.

Discover Financial Services Annual Data

Nov03Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13
ev2ebit 0.000.000.0011.74-1.19-1.1317.498.009.9610.41

Discover Financial Services Quarterly Data

Aug12Nov12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 8.879.967.848.999.639.8510.4110.1410.8910.94
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