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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Dow Chemical Co's enterprise value is $77,713 Mil. Dow Chemical Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $6,957 Mil. Therefore, Dow Chemical Co's EV/EBIT ratio for today is 11.17.

DOW' s 10-Year EV/EBIT Range
Min: -390.4   Max: 123.4
Current: 11.38

-390.4
123.4

During the past 13 years, the highest EV/EBIT Ratio of Dow Chemical Co was 123.40. The lowest was -390.40. And the median was 15.00.

DOW's EV/EBITis ranked higher than
67% of the 766 Companies
in the Global Chemicals industry.

( Industry Median: 15.87 vs. DOW: 11.38 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Dow Chemical Co's enterprise value for the quarter that ended in Mar. 2015 was $74,024 Mil. Dow Chemical Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $6,957 Mil. Dow Chemical Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 9.40%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=77713.009/6957
=11.17

Dow Chemical Co's current Enterprise Value is $77,713 Mil.
Dow Chemical Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1556 (Jun. 2014 ) + 1575 (Sep. 2014 ) + 1380 (Dec. 2014 ) + 2446 (Mar. 2015 ) = $6,957 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 Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2015 )
=6957/74024.446
=9.40 %

Dow Chemical Co's Enterprise Value for the quarter that ended in Mar. 2015 was $74,024 Mil.
Dow Chemical Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1556 (Jun. 2014 ) + 1575 (Sep. 2014 ) + 1380 (Dec. 2014 ) + 2446 (Mar. 2015 ) = $6,957 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Dow Chemical Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 6.978.079.3911.9327.3914.3710.6220.648.9311.65

Dow Chemical Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 20.6417.1210.1911.368.939.5213.1412.4011.6510.64
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