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GuruFocus has detected 5 Warning Signs with eBay Inc $EBAY.
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eBay Inc (NAS:EBAY)
EV/EBIT
9.95 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, eBay Inc's enterprise value is $38,575 Mil. eBay Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $3,876 Mil. Therefore, eBay Inc's EV/EBIT ratio for today is 9.95.

EBAY' s EV/EBIT Range Over the Past 10 Years
Min: 1.3   Max: 32.5
Current: 9.6

1.3
32.5

During the past 13 years, the highest EV/EBIT Ratio of eBay Inc was 32.50. The lowest was 1.30. And the median was 8.50.

EBAY's EV/EBIT is ranked higher than
75% of the 827 Companies
in the Global Specialty Retail industry.

( Industry Median: 15.49 vs. EBAY: 9.60 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). eBay Inc's enterprise value for the quarter that ended in Dec. 2016 was $35,002 Mil. eBay Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $3,876 Mil. eBay Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 11.07%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=38574.783/3876
=9.95

eBay Inc's current Enterprise Value is $38,575 Mil.
eBay Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 614 (Mar. 2016 ) + 531 (Jun. 2016 ) + 542 (Sep. 2016 ) + 2189 (Dec. 2016 ) = $3,876 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).

eBay 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 )
=3876/35002.3417
=11.07 %

eBay Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $35,002 Mil.
eBay Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 614 (Mar. 2016 ) + 531 (Jun. 2016 ) + 542 (Sep. 2016 ) + 2189 (Dec. 2016 ) = $3,876 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.

eBay Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 18.222.465.434.863.207.279.378.9513.009.03

eBay Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 10.138.959.5711.4913.0713.0010.7310.0313.979.03
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