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Demand Media, Inc. (NYSE:DMD)
EV/EBIT
26.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Demand Media, Inc.'s enterprise value is $325.0 Mil. Demand Media, Inc.'s operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $-18.5 Mil. Therefore, Demand Media, Inc.'s EV/EBIT ratio for today is 26.30.

DMD' s 10-Year EV/EBIT Range
Min: 36.4   Max: 86.2
Current: 26.3

36.4
86.2

During the past 6 years, the highest EV/EBIT Ratio of Demand Media, Inc. was 86.20. The lowest was 36.40. And the median was 50.60.

DMD's EV/EBITis ranked higher than
53% of the 270 Companies
in the Global Internet Content & Information industry.

( Industry Median: 22.29 vs. DMD: 26.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Demand Media, Inc.'s enterprise value for the quarter that ended in Dec. 2013 was $462.5 Mil. Demand Media, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $-18.5 Mil. Demand Media, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 0.00%.


Definition

Demand Media, Inc.'s EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=324.969/-18.483
=

Demand Media, Inc.'s current Enterprise Value is $325.0 Mil.
Demand Media, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1.266 (Mar. 2013 ) + 1.333 (Jun. 2013 ) + -9.747 (Sep. 2013 ) + -11.335 (Dec. 2013 ) = $-18.5 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).

Demand Media, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=-18.483/462.5006
= %

Demand Media, Inc.'s Enterprise Value for the quarter that ended in Dec. 2013 was $462.5 Mil.
Demand Media, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1.266 (Mar. 2013 ) + 1.333 (Jun. 2013 ) + -9.747 (Sep. 2013 ) + -11.335 (Dec. 2013 ) = $-18.5 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.

Demand Media, Inc. Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.000.000.000.000.000.000.0081.460.00

Demand Media, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 0.000.000.000.000.0081.4650.0336.910.000.00
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