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GuruFocus has detected 3 Warning Signs with FirstEnergy Corp $FE.
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FirstEnergy Corp (NYSE:FE)
EV-to-EBIT
-4.43 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, FirstEnergy Corp's enterprise value is $36,220 Mil. FirstEnergy Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-8,178 Mil. Therefore, FirstEnergy Corp's EV/EBIT ratio for today is -4.43.

During the past 13 years, the highest EV/EBIT Ratio of FirstEnergy Corp was 63.80. The lowest was -4.43. And the median was 13.90.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). FirstEnergy Corp's enterprise value for the quarter that ended in Dec. 2016 was $35,552 Mil. FirstEnergy Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-8,178 Mil. FirstEnergy Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was -23.00%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=36220.249/-8178
=-4.43

FirstEnergy Corp's current Enterprise Value is $36,220 Mil.
FirstEnergy Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 804 (Mar. 2016 ) + -956 (Jun. 2016 ) + 889 (Sep. 2016 ) + -8915 (Dec. 2016 ) = $-8,178 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).

FirstEnergy 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 )
=-8178/35552.414
=-23.00 %

FirstEnergy Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $35,552 Mil.
FirstEnergy Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 804 (Mar. 2016 ) + -956 (Jun. 2016 ) + 889 (Sep. 2016 ) + -8915 (Dec. 2016 ) = $-8,178 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.

FirstEnergy Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 10.498.1212.7513.4415.1216.3823.0433.6118.49-4.35

FirstEnergy Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 19.0133.6127.7723.2020.5718.4917.8462.7060.13-4.35
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