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E*Trade Financial Corp (NAS:ETFC)
EV/EBIT
11.80 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, E*Trade Financial Corp's enterprise value is $7,872 Mil. E*Trade Financial Corp's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $667 Mil. Therefore, E*Trade Financial Corp's EV/EBIT ratio for today is 11.80.

ETFC' s 10-Year EV/EBIT Range
Min: -62.3   Max: 594.8
Current: 11.8

-62.3
594.8

During the past 13 years, the highest EV/EBIT Ratio of E*Trade Financial Corp was 594.80. The lowest was -62.30. And the median was 15.80.

ETFC's EV/EBITis ranked higher than
85% of the 482 Companies
in the Global Capital Markets industry.

( Industry Median: 22.03 vs. ETFC: 11.80 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). E*Trade Financial Corp's enterprise value for the quarter that ended in Sep. 2014 was $7,795 Mil. E*Trade Financial Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $667 Mil. E*Trade Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 8.55%.


Definition

E*Trade Financial Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=7872.000/666.961
=11.80

E*Trade Financial Corp's current Enterprise Value is $7,872 Mil.
E*Trade Financial Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 219.961 (Dec. 2013 ) + 181 (Mar. 2014 ) + 142 (Jun. 2014 ) + 124 (Sep. 2014 ) = $667 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).

E*Trade Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=666.961/7794.6584
=8.56 %

E*Trade Financial Corp's Enterprise Value for the quarter that ended in Sep. 2014 was $7,795 Mil.
E*Trade Financial Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 219.961 (Dec. 2013 ) + 181 (Mar. 2014 ) + 142 (Jun. 2014 ) + 124 (Sep. 2014 ) = $667 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.

E*Trade Financial Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 13.6419.9416.72-4.53-2.14-9.6451.4813.798.3718.93

E*Trade Financial Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 18.1412.708.3713.0026.0223.9918.9317.6011.8411.69
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