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Equity Residential (NYSE:EQR)
EV/EBIT
37.27 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Equity Residential's enterprise value is $28,690 Mil. Equity Residential's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $770 Mil. Therefore, Equity Residential's EV/EBIT ratio for today is 37.27.

EQR' s 10-Year EV/EBIT Range
Min: 29.3   Max: 71.9
Current: 37.27

29.3
71.9

During the past 13 years, the highest EV/EBIT Ratio of Equity Residential was 71.90. The lowest was 29.30. And the median was 50.60.

EQR's EV/EBITis ranked higher than
62% of the 695 Companies
in the Global REIT - Residential industry.

( Industry Median: 31.63 vs. EQR: 37.27 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Equity Residential's enterprise value for the quarter that ended in Jun. 2014 was $28,992 Mil. Equity Residential's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $770 Mil. Equity Residential's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 2.65%.


Definition

Equity Residential's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=28689.701/769.717
=37.27

Equity Residential's current Enterprise Value is $28,690 Mil.
Equity Residential's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 121.394 (Sep. 2013 ) + 220.767 (Dec. 2013 ) + 199.252 (Mar. 2014 ) + 228.304 (Jun. 2014 ) = $770 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).

Equity Residential's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jun. 2014 )
=769.717/28992.301
=2.65 %

Equity Residential's Enterprise Value for the quarter that ended in Jun. 2014 was $28,992 Mil.
Equity Residential's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 121.394 (Sep. 2013 ) + 220.767 (Dec. 2013 ) + 199.252 (Mar. 2014 ) + 228.304 (Jun. 2014 ) = $770 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.

Equity Residential Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 33.4237.9449.8036.5038.4038.2063.9148.8550.0858.38

Equity Residential Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 44.6853.4450.6550.0849.6858.1669.8658.3853.2537.67
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