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Demand Media Inc (NYSE:DMD)
EV/EBIT
-12.64 (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 $417.0 Mil. Demand Media Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $-33.6 Mil. Therefore, Demand Media Inc's EV/EBIT ratio for today is -12.64.

DMD' s 10-Year EV/EBIT Range
Min: 36.4   Max: 86.2
Current: -12.64

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 lower than
60% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 48.40 vs. DMD: -12.64 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Demand Media Inc's enterprise value for the quarter that ended in Mar. 2014 was $379.9 Mil. Demand Media Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $-33.6 Mil. Demand Media Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 0.00%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=417.037/-33.636
=

Demand Media Inc's current Enterprise Value is $417.0 Mil.
Demand Media Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 1.333 (Jun. 2013 ) + -9.747 (Sep. 2013 ) + -11.335 (Dec. 2013 ) + -13.887 (Mar. 2014 ) = $-33.6 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 Mar. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=-33.636/379.9355
= %

Demand Media Inc's Enterprise Value for the quarter that ended in Mar. 2014 was $379.9 Mil.
Demand Media Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 1.333 (Jun. 2013 ) + -9.747 (Sep. 2013 ) + -11.335 (Dec. 2013 ) + -13.887 (Mar. 2014 ) = $-33.6 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebit 0.000.000.000.0081.4650.0336.910.000.000.00
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