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Eaton Corp PLC (NYSE:ETN)
EV/EBIT
16.64 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Eaton Corp PLC's enterprise value is $38,975 Mil. Eaton Corp PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $2,342 Mil. Therefore, Eaton Corp PLC's EV/EBIT ratio for today is 16.64.

ETN' s EV/EBIT Range Over the Past 10 Years
Min: 7.7   Max: 36
Current: 16.86

7.7
36

During the past 13 years, the highest EV/EBIT Ratio of Eaton Corp PLC was 36.00. The lowest was 7.70. And the median was 15.60.

ETN's EV/EBIT is ranked lower than
54% of the 1423 Companies
in the Global Diversified Industrials industry.

( Industry Median: 15.52 vs. ETN: 16.86 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Eaton Corp PLC's enterprise value for the quarter that ended in Sep. 2016 was $37,448 Mil. Eaton Corp PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $2,342 Mil. Eaton Corp PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 6.25%.


Definition

Eaton Corp PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=38975.238/2342
=16.64

Eaton Corp PLC's current Enterprise Value is $38,975 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Eaton Corp PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $2,342 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).

Eaton Corp PLC'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 )
=2342/37448.207
=6.25 %

Eaton Corp PLC's Enterprise Value for the quarter that ended in Sep. 2016 was $37,448 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Eaton Corp PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $2,342 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.

Eaton Corp PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 11.8514.859.5629.9716.7210.3323.0720.5316.2813.63

Eaton Corp PLC Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 20.5216.8216.2816.1615.6913.2913.6316.2315.6716.16
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