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GuruFocus has detected 1 Warning Sign with Express Scripts Holding Co $ESRX.
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Express Scripts Holding Co (NAS:ESRX)
EV-to-EBIT
9.95 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Express Scripts Holding Co's enterprise value is $50,985 Mil. Express Scripts Holding Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $5,122 Mil. Therefore, Express Scripts Holding Co's EV/EBIT ratio for today is 9.95.

ESRX' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.8   Max: 30.2
Current: 9.95

8.8
30.2

During the past 13 years, the highest EV/EBIT Ratio of Express Scripts Holding Co was 30.20. The lowest was 8.80. And the median was 16.15.

ESRX's EV-to-EBIT is ranked higher than
76% of the 21 Companies
in the Global Health Care Plans industry.

( Industry Median: 14.01 vs. ESRX: 9.95 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Express Scripts Holding Co's enterprise value for the quarter that ended in Dec. 2016 was $54,151 Mil. Express Scripts Holding Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $5,122 Mil. Express Scripts Holding Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 9.46%.


Definition

Express Scripts Holding Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=50984.954/5121.9
=9.95

Express Scripts Holding Co's current Enterprise Value is $50,985 Mil.
Express Scripts Holding Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 949.6 (Mar. 2016 ) + 1266.6 (Jun. 2016 ) + 1424.3 (Sep. 2016 ) + 1481.4 (Dec. 2016 ) = $5,122 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).

Express Scripts Holding Co'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 )
=5121.9/54151.245
=9.46 %

Express Scripts Holding Co's Enterprise Value for the quarter that ended in Dec. 2016 was $54,151 Mil.
Express Scripts Holding Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 949.6 (Mar. 2016 ) + 1266.6 (Jun. 2016 ) + 1424.3 (Sep. 2016 ) + 1481.4 (Dec. 2016 ) = $5,122 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.

Express Scripts Holding Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 19.0011.4917.6514.7010.3620.3318.2820.0516.4010.57

Express Scripts Holding Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 18.5120.0519.8619.4017.0916.4013.0113.5411.7910.57
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