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GuruFocus has detected 2 Warning Signs with Finisar Corp $FNSR.
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Finisar Corp (NAS:FNSR)
EV-to-EBIT
13.12 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Finisar Corp's enterprise value is $2,030 Mil. Finisar Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $155 Mil. Therefore, Finisar Corp's EV/EBIT ratio for today is 13.12.

FNSR' s EV-to-EBIT Range Over the Past 10 Years
Min: -253.5   Max: 361.7
Current: 13.12

-253.5
361.7

During the past 13 years, the highest EV/EBIT Ratio of Finisar Corp was 361.70. The lowest was -253.50. And the median was 20.40.

FNSR's EV-to-EBIT is ranked higher than
52% of the 464 Companies
in the Global Communication Equipment industry.

( Industry Median: 16.69 vs. FNSR: 13.12 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Finisar Corp's enterprise value for the quarter that ended in Jan. 2017 was $2,776 Mil. Finisar Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $155 Mil. Finisar Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was 5.57%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2029.732/154.761
=13.12

Finisar Corp's current Enterprise Value is $2,030 Mil.
Finisar Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 14.856 (Apr. 2016 ) + 28.978 (Jul. 2016 ) + 54.644 (Oct. 2016 ) + 56.283 (Jan. 2017 ) = $155 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).

Finisar Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=154.761/2776.1856
=5.57 %

Finisar Corp's Enterprise Value for the quarter that ended in Jan. 2017 was $2,776 Mil.
Finisar Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 14.856 (Apr. 2016 ) + 28.978 (Jul. 2016 ) + 54.644 (Oct. 2016 ) + 56.283 (Jan. 2017 ) = $155 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.

Finisar Corp Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ev2ebit -46.42-9.81-1.72-69.4322.6927.24-183.0419.0356.5130.88

Finisar Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 19.7433.9556.5171.7623.3922.8230.8825.3523.6317.94
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