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Emerson Electric Co (NYSE:EMR)
EV/EBIT
12.92 (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 $40,166 Mil. Emerson Electric Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $3,108 Mil. Therefore, Emerson Electric Co's EV/EBIT ratio for today is 12.92.

EMR' s EV/EBIT Range Over the Past 10 Years
Min: 6.5   Max: 16.9
Current: 12.92

6.5
16.9

During the past 13 years, the highest EV/EBIT Ratio of Emerson Electric Co was 16.90. The lowest was 6.50. And the median was 12.70.

EMR's EV/EBIT is ranked higher than
55% of the 1561 Companies
in the Global Diversified Industrials industry.

( Industry Median: 14.10 vs. EMR: 12.92 )

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. 2016 was $39,003 Mil. Emerson Electric Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $3,108 Mil. Emerson Electric Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 7.97%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=40166.439/3108
=12.92

Emerson Electric Co's current Enterprise Value is $40,166 Mil.
Emerson Electric Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 845 (Jun. 2015 ) + 1045 (Sep. 2015 ) + 556 (Dec. 2015 ) + 662 (Mar. 2016 ) = $3,108 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. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=3108/39003.4788
=7.97 %

Emerson Electric Co's Enterprise Value for the quarter that ended in Mar. 2016 was $39,003 Mil.
Emerson Electric Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 845 (Jun. 2015 ) + 1045 (Sep. 2015 ) + 556 (Dec. 2015 ) + 662 (Mar. 2016 ) = $3,108 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
ev2ebit 12.8113.408.9512.3613.618.7211.3214.0913.047.51

Emerson Electric Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 15.4815.0112.7013.0412.559.319.777.518.5712.55
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