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Emerson Electric Co (NYSE:EMR)
EV/EBIT
8.57 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Emerson Electric Co's enterprise value is $38,292 Mil. Emerson Electric Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $4,469 Mil. Therefore, Emerson Electric Co's EV/EBIT ratio for today is 8.57.

EMR' s 10-Year EV/EBIT Range
Min: 6.7   Max: 16.4
Current: 8.57

6.7
16.4

During the past 13 years, the highest EV/EBIT Ratio of Emerson Electric Co was 16.40. The lowest was 6.70. And the median was 12.10.

EMR's EV/EBITis ranked higher than
77% of the 1343 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.46 vs. EMR: 8.57 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Emerson Electric Co's enterprise value for the quarter that ended in Mar. 2015 was $42,220 Mil. Emerson Electric Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $4,469 Mil. Emerson Electric Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 10.59%.


Definition

Emerson Electric Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=38291.712/4469
=8.57

Emerson Electric Co's current Enterprise Value is $38,292 Mil.
Emerson Electric Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1123 (Jun. 2014 ) + 875 (Sep. 2014 ) + 818 (Dec. 2014 ) + 1653 (Mar. 2015 ) = $4,469 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).

Emerson Electric 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 )
=4469/42220.024
=10.59 %

Emerson Electric Co's Enterprise Value for the quarter that ended in Mar. 2015 was $42,220 Mil.
Emerson Electric Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 1123 (Jun. 2014 ) + 875 (Sep. 2014 ) + 818 (Dec. 2014 ) + 1653 (Mar. 2015 ) = $4,469 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.

Emerson Electric Co Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ev2ebit 13.5712.7813.398.9112.3613.618.7211.3214.0913.03

Emerson Electric Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 11.9112.4414.7514.0915.4815.0112.7113.0312.639.45
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