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GuruFocus has detected 1 Warning Sign with E*TRADE Financial Corp $ETFC.
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E*TRADE Financial Corp (NAS:ETFC)
EV-to-EBIT
10.84 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, E*TRADE Financial Corp's enterprise value is $9,087 Mil. E*TRADE Financial Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $838 Mil. Therefore, E*TRADE Financial Corp's EV/EBIT ratio for today is 10.84.

ETFC' s EV-to-EBIT Range Over the Past 10 Years
Min: -2205.1   Max: 594.8
Current: 10.84

-2205.1
594.8

During the past 13 years, the highest EV/EBIT Ratio of E*TRADE Financial Corp was 594.80. The lowest was -2205.10. And the median was 17.20.

ETFC's EV-to-EBIT is ranked higher than
61% of the 619 Companies
in the Global Capital Markets industry.

( Industry Median: 14.74 vs. ETFC: 10.84 )

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 Dec. 2016 was $9,340 Mil. E*TRADE Financial Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $838 Mil. E*TRADE Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 8.97%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=9087.174/838
=10.84

E*TRADE Financial Corp's current Enterprise Value is $9,087 Mil.
E*TRADE Financial Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 194 (Mar. 2016 ) + 214 (Jun. 2016 ) + 225 (Sep. 2016 ) + 205 (Dec. 2016 ) = $838 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).

E*TRADE Financial 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 )
=838/9339.714
=8.97 %

E*TRADE Financial Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $9,340 Mil.
E*TRADE Financial Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 194 (Mar. 2016 ) + 214 (Jun. 2016 ) + 225 (Sep. 2016 ) + 205 (Dec. 2016 ) = $838 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.

E*TRADE Financial Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -4.59-4.08-9.6451.4810.8717.9027.6322.7386.7111.15

E*TRADE Financial Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 14.0722.7324.5125.01-1,907.7686.7129.8217.0510.5111.15
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