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GuruFocus has detected 5 Warning Signs with FMC Corp $FMC.
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FMC Corp (NYSE:FMC)
EV-to-EBIT
32.86 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, FMC Corp's enterprise value is $9,609 Mil. FMC Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $292 Mil. Therefore, FMC Corp's EV/EBIT ratio for today is 32.86.

FMC' s EV-to-EBIT Range Over the Past 10 Years
Min: -158.6   Max: 129.7
Current: 22.8

-158.6
129.7

During the past 13 years, the highest EV/EBIT Ratio of FMC Corp was 129.70. The lowest was -158.60. And the median was 14.60.

FMC's EV-to-EBIT is ranked lower than
68% of the 934 Companies
in the Global Chemicals industry.

( Industry Median: 15.05 vs. FMC: 22.80 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). FMC Corp's enterprise value for the quarter that ended in Sep. 2016 was $8,352 Mil. FMC Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $292 Mil. FMC Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 3.50%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=9608.849/292.4
=32.86

FMC Corp's current Enterprise Value is $9,609 Mil.
FMC Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -54 (Dec. 2015 ) + 106.5 (Mar. 2016 ) + 124.8 (Jun. 2016 ) + 115.1 (Sep. 2016 ) = $292 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).

FMC 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 )
=292.4/8352.0256
=3.50 %

FMC Corp's Enterprise Value for the quarter that ended in Sep. 2016 was $8,352 Mil.
FMC Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was -54 (Dec. 2015 ) + 106.5 (Mar. 2016 ) + 124.8 (Jun. 2016 ) + 115.1 (Sep. 2016 ) = $292 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.

FMC Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 20.767.9513.8416.0111.4913.9421.8822.14-149.5522.30

FMC Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 22.0722.1454.6768.95110.57-149.5548.7246.0628.5622.30
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