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Education Management Corporation (NAS:EDMC)
EV/EBIT
13.20 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Education Management Corporation's enterprise value is $1,733 Mil. Education Management Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $-179 Mil. Therefore, Education Management Corporation's EV/EBIT ratio for today is 13.20.

EDMC' s 10-Year EV/EBIT Range
Min: 4.9   Max: 12.8
Current: 13.2

4.9
12.8

During the past 13 years, the highest EV/EBIT Ratio of Education Management Corporation was 12.80. The lowest was 4.90. And the median was 7.70.

EDMC's EV/EBITis ranked higher than
55% of the 99 Companies
in the Global Education & Training Services industry.

( Industry Median: 11.80 vs. EDMC: 13.20 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Education Management Corporation's enterprise value for the quarter that ended in Dec. 2013 was $2,485 Mil. Education Management Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $-179 Mil. Education Management Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 0.00%.


Definition

Education Management Corporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=1733.477/-178.596
=

Education Management Corporation's current Enterprise Value is $1,733 Mil.
Education Management Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was -242.001 (Mar. 2013 ) + 22.255 (Jun. 2013 ) + 11.918 (Sep. 2013 ) + 29.232 (Dec. 2013 ) = $-179 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).

Education Management Corporation'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 )
=-178.596/2485.4543
= %

Education Management Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $2,485 Mil.
Education Management Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was -242.001 (Mar. 2013 ) + 22.255 (Jun. 2013 ) + 11.918 (Sep. 2013 ) + 29.232 (Dec. 2013 ) = $-179 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.

Education Management Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev2ebit 0.000.000.000.000.000.007.988.500.000.00

Education Management Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 5.9710.710.000.000.000.000.000.000.000.00
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