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EMC Corporation (NYSE:EMC)
EV/EBIT
12.00 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, EMC Corporation's enterprise value is $50,417 Mil. EMC Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $4,150 Mil. Therefore, EMC Corporation's EV/EBIT ratio for today is 12.00.

EMC' s 10-Year EV/EBIT Range
Min: 9.5   Max: 581.2
Current: 12

9.5
581.2

During the past 13 years, the highest EV/EBIT Ratio of EMC Corporation was 581.20. The lowest was 9.50. And the median was 19.25.

EMC's EV/EBITis ranked higher than
69% of the 1925 Companies
in the Global Data Storage industry.

( Industry Median: 15.73 vs. EMC: 12.00 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). EMC Corporation's enterprise value for the quarter that ended in Dec. 2013 was $49,735 Mil. EMC Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $4,150 Mil. EMC Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 8.34%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=50417.359/4149.583
=12.15

EMC Corporation's current Enterprise Value is $50,417 Mil.
EMC Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 760.583 (Mar. 2013 ) + 1022 (Jun. 2013 ) + 907 (Sep. 2013 ) + 1460 (Dec. 2013 ) = $4,150 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).

EMC 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 )
=4149.583/49734.9275
=8.34 %

EMC Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $49,735 Mil.
EMC Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 760.583 (Mar. 2013 ) + 1022 (Jun. 2013 ) + 907 (Sep. 2013 ) + 1460 (Dec. 2013 ) = $4,150 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.

EMC Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 31.6619.4224.1520.9211.4023.1717.1412.2612.6111.99

EMC Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 13.0512.2616.1313.3414.3112.6112.0111.7812.9311.99
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