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GuruFocus has detected 2 Warning Signs with D.R. Horton Inc $DHI.
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D.R. Horton Inc (NYSE:DHI)
EV/EBIT
9.51 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, D.R. Horton Inc's enterprise value is $12,695 Mil. D.R. Horton Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,334 Mil. Therefore, D.R. Horton Inc's EV/EBIT ratio for today is 9.51.

DHI' s EV/EBIT Range Over the Past 10 Years
Min: -158.3   Max: 128.8
Current: 9.48

-158.3
128.8

During the past 13 years, the highest EV/EBIT Ratio of D.R. Horton Inc was 128.80. The lowest was -158.30. And the median was 11.80.

DHI's EV/EBIT is ranked higher than
66% of the 545 Companies
in the Global Residential Construction industry.

( Industry Median: 12.90 vs. DHI: 9.48 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). D.R. Horton Inc's enterprise value for the quarter that ended in Sep. 2016 was $13,231 Mil. D.R. Horton Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,334 Mil. D.R. Horton Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 10.09%.


Definition

D.R. Horton Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=12695.110/1334.4
=9.51

D.R. Horton Inc's current Enterprise Value is $12,695 Mil.
D.R. Horton Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 234.8 (Dec. 2015 ) + 289.4 (Mar. 2016 ) + 372.1 (Jun. 2016 ) + 438.1 (Sep. 2016 ) = $1,334 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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).

D.R. Horton Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=1334.4/13230.784
=10.09 %

D.R. Horton Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $13,231 Mil.
D.R. Horton Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 234.8 (Dec. 2015 ) + 289.4 (Mar. 2016 ) + 372.1 (Jun. 2016 ) + 438.1 (Sep. 2016 ) = $1,334 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

D.R. Horton Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebit -8.85-2.52-10.8821.9656.4628.9213.2913.2612.029.92

D.R. Horton Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 15.7913.2615.1616.2012.9712.0212.7211.4611.419.92
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