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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Discover Financial Services's enterprise value is $36,583 Mil. Discover Financial Services's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $3,618 Mil. Therefore, Discover Financial Services's EV/EBIT ratio for today is 10.11.

DFS' s EV/EBIT Range Over the Past 10 Years
Min: -2.7   Max: 18.5
Current: 10.11

-2.7
18.5

During the past 13 years, the highest EV/EBIT Ratio of Discover Financial Services was 18.50. The lowest was -2.70. And the median was 9.50.

DFS's EV/EBIT is ranked higher than
62% of the 253 Companies
in the Global Credit Services industry.

( Industry Median: 15.17 vs. DFS: 10.11 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Discover Financial Services's enterprise value for the quarter that ended in Mar. 2016 was $34,268 Mil. Discover Financial Services's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $3,618 Mil. Discover Financial Services's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 10.56%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=36583.150/3618
=10.11

Discover Financial Services's current Enterprise Value is $36,583 Mil.
Discover Financial Services's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 942 (Jun. 2015 ) + 974 (Sep. 2015 ) + 788 (Dec. 2015 ) + 914 (Mar. 2016 ) = $3,618 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 Mar. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=3618/34268.064
=10.56 %

Discover Financial Services's Enterprise Value for the quarter that ended in Mar. 2016 was $34,268 Mil.
Discover Financial Services's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 942 (Jun. 2015 ) + 974 (Sep. 2015 ) + 788 (Dec. 2015 ) + 914 (Mar. 2016 ) = $3,618 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.

Discover Financial Services Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15
ev2ebit 0.005.82-1.83-1.1317.498.009.9610.4112.2810.61

Discover Financial Services Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 10.4110.1410.8910.9412.2810.3011.2410.5010.619.47
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