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

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Eaton Corp PLC's enterprise value is $40,526 Mil. Eaton Corp PLC's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $1,624 Mil. Therefore, Eaton Corp PLC's EV/EBIT ratio for today is 24.95.

ETN' s 10-Year EV/EBIT Range
Min: 7.8   Max: 38.1
Current: 24.95

7.8
38.1

During the past 13 years, the highest EV/EBIT Ratio of Eaton Corp PLC was 38.10. The lowest was 7.80. And the median was 14.50.

ETN's EV/EBITis ranked higher than
64% of the 2168 Companies
in the Global Diversified Industrials industry.

( Industry Median: 17.18 vs. ETN: 24.95 )

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. 2014 was $38,143 Mil. Eaton Corp PLC's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $1,624 Mil. Eaton Corp PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 4.26%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=40525.894/1624
=24.95

Eaton Corp PLC's current Enterprise Value is $40,526 Mil.
Eaton Corp PLC's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 480 (Dec. 2013 ) + 510 (Mar. 2014 ) + -54 (Jun. 2014 ) + 688 (Sep. 2014 ) = $1,624 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).

Eaton Corp PLC'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 )
=1624/38143.402
=4.26 %

Eaton Corp PLC's Enterprise Value for the quarter that ended in Sep. 2014 was $38,143 Mil.
Eaton Corp PLC's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 480 (Dec. 2013 ) + 510 (Mar. 2014 ) + -54 (Jun. 2014 ) + 688 (Sep. 2014 ) = $1,624 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.

Eaton Corp PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 14.0611.3912.3514.349.5232.7016.7210.5723.0520.53

Eaton Corp PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 9.6811.3623.0523.8822.8521.3120.5320.1029.1823.49
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