Switch to:
Equity Residential (NYSE:EQR)
EV/EBIT
59.83 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Equity Residential's enterprise value is $31,651 Mil. Equity Residential's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $531 Mil. Therefore, Equity Residential's EV/EBIT ratio for today is 59.83.

EQR' s 10-Year EV/EBIT Range
Min: 28.8   Max: 69
Current: 59.83

28.8
69

During the past 13 years, the highest EV/EBIT Ratio of Equity Residential was 69.00. The lowest was 28.80. And the median was 50.50.

EQR's EV/EBITis ranked lower than
69% of the 596 Companies
in the Global REIT - Residential industry.

( Industry Median: 28.57 vs. EQR: 59.83 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Equity Residential's enterprise value for the quarter that ended in Dec. 2013 was $29,795 Mil. Equity Residential's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $531 Mil. Equity Residential's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 1.78%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=31651.152/530.723
=59.64

Equity Residential's current Enterprise Value is $31,651 Mil.
Equity Residential's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 117.529 (Mar. 2013 ) + 71.033 (Jun. 2013 ) + 121.394 (Sep. 2013 ) + 220.767 (Dec. 2013 ) = $531 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 Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=530.723/29795.1817
=1.78 %

Equity Residential's Enterprise Value for the quarter that ended in Dec. 2013 was $29,795 Mil.
Equity Residential's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 117.529 (Mar. 2013 ) + 71.033 (Jun. 2013 ) + 121.394 (Sep. 2013 ) + 220.767 (Dec. 2013 ) = $531 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 33.4237.9449.8036.5038.4038.2063.9148.8550.0856.14

Equity Residential Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 51.4448.8552.1053.4450.6550.0848.3755.6866.7556.14
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide