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E*Trade Financial Corp (NAS:ETFC)
EV/EBIT
33.30 (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 $9,113 Mil. E*Trade Financial Corp's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $281 Mil. Therefore, E*Trade Financial Corp's EV/EBIT ratio for today is 33.30.

ETFC' s 10-Year EV/EBIT Range
Min: 7.8   Max: 594.8
Current: 33.3

7.8
594.8

During the past 13 years, the highest EV/EBIT Ratio of E*Trade Financial Corp was 594.80. The lowest was 7.80. And the median was 18.60.

ETFC's EV/EBITis ranked lower than
68% of the 297 Companies
in the Global Capital Markets industry.

( Industry Median: 15.72 vs. ETFC: 33.30 )

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. 2013 was $6,850 Mil. E*Trade Financial Corp's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $281 Mil. E*Trade Financial Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 4.10%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=9112.919/280.648
=32.47

E*Trade Financial Corp's current Enterprise Value is $9,113 Mil.
E*Trade Financial Corp's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 57.367 (Mar. 2013 ) + -20.145 (Jun. 2013 ) + 108.659 (Sep. 2013 ) + 134.767 (Dec. 2013 ) = $281 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 Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=280.648/6850.286
=4.10 %

E*Trade Financial Corp's Enterprise Value for the quarter that ended in Dec. 2013 was $6,850 Mil.
E*Trade Financial Corp's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 57.367 (Mar. 2013 ) + -20.145 (Jun. 2013 ) + 108.659 (Sep. 2013 ) + 134.767 (Dec. 2013 ) = $281 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 12.3819.5316.720.000.000.0051.4819.338.3724.41

E*Trade Financial Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 21.1619.3324.8726.4915.168.3713.9729.1623.6224.41
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