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Dow Chemical Co (NYSE:DOW)
EV/EBIT
18.71 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Dow Chemical Co's enterprise value is $79,796 Mil. Dow Chemical Co's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $4,435 Mil. Therefore, Dow Chemical Co's EV/EBIT ratio for today is 18.71.

DOW' s 10-Year EV/EBIT Range
Min: 8.4   Max: 123.4
Current: 18.71

8.4
123.4

During the past 13 years, the highest EV/EBIT Ratio of Dow Chemical Co was 123.40. The lowest was 8.40. And the median was 17.20.

DOW's EV/EBITis ranked higher than
70% of the 1046 Companies
in the Global Chemicals industry.

( Industry Median: 18.45 vs. DOW: 18.71 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Dow Chemical Co's enterprise value for the quarter that ended in Jun. 2014 was $0 Mil. Dow Chemical Co's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $4,435 Mil. Dow Chemical Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 0.00%.


Definition

Dow Chemical Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=79795.952/4435
=17.99

Dow Chemical Co's current Enterprise Value is $79,796 Mil.
Dow Chemical Co's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 788 (Sep. 2013 ) + 908 (Dec. 2013 ) + 1444 (Mar. 2014 ) + 1295 (Jun. 2014 ) = $4,435 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).

Dow Chemical Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jun. 2014 )
=4435/0
= %

Dow Chemical Co's Enterprise Value for the quarter that ended in Jun. 2014 was $0 Mil.
Dow Chemical Co's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 788 (Sep. 2013 ) + 908 (Dec. 2013 ) + 1444 (Mar. 2014 ) + 1295 (Jun. 2014 ) = $4,435 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.

Dow Chemical Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 16.649.4410.9213.9725.13116.4120.8513.1425.4016.58

Dow Chemical Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 19.1217.8716.8825.4020.4619.2223.0316.5817.750.00
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