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GuruFocus has detected 3 Warning Signs with Esterline Technologies Corp $ESL.
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Esterline Technologies Corp (NYSE:ESL)
EV-to-EBIT
17.00 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Esterline Technologies Corp's enterprise value is $3,118 Mil. Esterline Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $183 Mil. Therefore, Esterline Technologies Corp's EV/EBIT ratio for today is 17.00.

ESL' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.9   Max: 27.9
Current: 17.01

5.9
27.9

During the past 13 years, the highest EV/EBIT Ratio of Esterline Technologies Corp was 27.90. The lowest was 5.90. And the median was 14.10.

ESL's EV-to-EBIT is ranked higher than
53% of the 189 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 17.78 vs. ESL: 17.01 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Esterline Technologies Corp's enterprise value for the quarter that ended in Dec. 2016 was $3,214 Mil. Esterline Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $183 Mil. Esterline Technologies Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 5.71%.


Definition

Esterline Technologies Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3117.839/183.389
=17.00

Esterline Technologies Corp's current Enterprise Value is $3,118 Mil.
Esterline Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 27.93 (Mar. 2016 ) + 54.075 (Jun. 2016 ) + 71.312 (Sep. 2016 ) + 30.072 (Dec. 2016 ) = $183 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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).

Esterline Technologies Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=183.389/3214.488
=5.71 %

Esterline Technologies Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $3,214 Mil.
Esterline Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 27.93 (Mar. 2016 ) + 54.075 (Jun. 2016 ) + 71.312 (Sep. 2016 ) + 30.072 (Dec. 2016 ) = $183 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Esterline Technologies Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Sep15Sep16
ev2ebit 13.317.6310.9610.7712.9513.1912.3516.9119.3316.77

Esterline Technologies Corp Quarterly Data

Oct14Jan15Apr15Jul15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 16.9118.0520.0417.3019.3324.6021.9019.8916.7717.53
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