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Electro Rent Corp (NAS:ELRC)
EV/EBIT
11.25 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Electro Rent Corp's enterprise value is $361.7 Mil. Electro Rent Corp's operating income for the trailing twelve months (TTM) ended in May. 2014 was $32.1 Mil. Therefore, Electro Rent Corp's EV/EBIT ratio for today is 11.25.

ELRC' s 10-Year EV/EBIT Range
Min: 5.3   Max: 17.7
Current: 11.25

5.3
17.7

During the past 13 years, the highest EV/EBIT Ratio of Electro Rent Corp was 17.70. The lowest was 5.30. And the median was 10.50.

ELRC's EV/EBITis ranked higher than
84% of the 261 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 19.40 vs. ELRC: 11.25 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Electro Rent Corp's enterprise value for the quarter that ended in May. 2014 was $381.8 Mil. Electro Rent Corp's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was $32.1 Mil. Electro Rent Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2014 was 8.42%.


Definition

Electro Rent Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=361.681/32.139
=11.25

Electro Rent Corp's current Enterprise Value is $361.7 Mil.
Electro Rent Corp's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 8.786 (Aug. 2013 ) + 8.912 (Nov. 2013 ) + 7.185 (Feb. 2014 ) + 7.256 (May. 2014 ) = $32.1 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).

Electro Rent Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: May. 2014 )=Operating Income (TTM)/Enterprise Value (Q: May. 2014 )
=32.139/381.8155
=8.42 %

Electro Rent Corp's Enterprise Value for the quarter that ended in May. 2014 was $381.8 Mil.
Electro Rent Corp's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 8.786 (Aug. 2013 ) + 8.912 (Nov. 2013 ) + 7.185 (Feb. 2014 ) + 7.256 (May. 2014 ) = $32.1 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.

Electro Rent Corp Annual Data

May05May06May07May08May09May10May11May12May13May14
ev2ebit 6.7010.7210.069.549.2415.168.898.9411.1111.88

Electro Rent Corp Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebit 11.658.9411.1810.0310.7311.1110.9414.2912.5011.88
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