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E*TRADE Financial Corp (NAS:ETFC)
EV/EBIT
11.03 (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 $9,872 Mil. E*TRADE Financial Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $895 Mil. Therefore, E*TRADE Financial Corp's EV/EBIT ratio for today is 11.03.

ETFC' s EV/EBIT Range Over the Past 10 Years
Min: -46.2   Max: 594.8
Current: 11.05

-46.2
594.8

During the past 13 years, the highest EV/EBIT Ratio of E*TRADE Financial Corp was 594.80. The lowest was -46.20. And the median was 17.55.

ETFC's EV/EBIT is ranked higher than
60% of the 572 Companies
in the Global Capital Markets industry.

( Industry Median: 14.39 vs. ETFC: 11.05 )

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. 2016 was $8,300 Mil. E*TRADE Financial Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $895 Mil. E*TRADE Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 10.78%.


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)
=9872.353/895
=11.03

E*TRADE Financial Corp's current Enterprise Value is $9,872 Mil.
E*TRADE Financial Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 262 (Dec. 2015 ) + 194 (Mar. 2016 ) + 214 (Jun. 2016 ) + 225 (Sep. 2016 ) = $895 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 Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=895/8299.8528
=10.78 %

E*TRADE Financial Corp's Enterprise Value for the quarter that ended in Sep. 2016 was $8,300 Mil.
E*TRADE Financial Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 262 (Dec. 2015 ) + 194 (Mar. 2016 ) + 214 (Jun. 2016 ) + 225 (Sep. 2016 ) = $895 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 16.70-4.59-4.08-9.6451.4810.8717.9027.6320.0540.26

E*TRADE Financial Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 14.5214.0720.0520.8821.09119.2340.2620.2512.829.27
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