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GuruFocus has detected 5 Warning Signs with Discovery Communications Inc $DISCK.
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Discovery Communications Inc (NAS:DISCK)
EV/EBIT
9.27 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Discovery Communications Inc's enterprise value is $18,772 Mil. Discovery Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $2,024 Mil. Therefore, Discovery Communications Inc's EV/EBIT ratio for today is 9.27.

DISCK' s EV/EBIT Range Over the Past 10 Years
Min: -584   Max: 33.7
Current: 9.27

-584
33.7

During the past 13 years, the highest EV/EBIT Ratio of Discovery Communications Inc was 33.70. The lowest was -584.00. And the median was 13.20.

DISCK's EV/EBIT is ranked higher than
82% of the 340 Companies
in the Global Media - Diversified industry.

( Industry Median: 18.73 vs. DISCK: 9.27 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Discovery Communications Inc's enterprise value for the quarter that ended in Dec. 2016 was $18,069 Mil. Discovery Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $2,024 Mil. Discovery Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 11.20%.


Definition

Discovery Communications Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=18771.656/2024
=9.27

Discovery Communications Inc's current Enterprise Value is $18,772 Mil.
Discovery Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 465 (Mar. 2016 ) + 601 (Jun. 2016 ) + 412 (Sep. 2016 ) + 546 (Dec. 2016 ) = $2,024 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).

Discovery Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=2024/18069.2
=11.20 %

Discovery Communications Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $18,069 Mil.
Discovery Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 465 (Mar. 2016 ) + 601 (Jun. 2016 ) + 412 (Sep. 2016 ) + 546 (Dec. 2016 ) = $2,024 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.

Discovery Communications Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -539.167.339.1713.217.9811.3013.6210.549.799.05

Discovery Communications Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 10.9210.549.7510.989.439.7910.279.019.669.05
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