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GuruFocus has detected 1 Warning Sign with Genpact Ltd $G.
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Genpact Ltd (NYSE:G)
EV-to-EBIT
15.19 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Genpact Ltd's enterprise value is $5,177 Mil. Genpact Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $341 Mil. Therefore, Genpact Ltd's EV/EBIT ratio for today is 15.19.

G' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.2   Max: 57.5
Current: 15.19

8.2
57.5

During the past 13 years, the highest EV/EBIT Ratio of Genpact Ltd was 57.50. The lowest was 8.20. And the median was 15.85.

G's EV-to-EBIT is ranked higher than
54% of the 707 Companies
in the Global Business Services industry.

( Industry Median: 16.41 vs. G: 15.19 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Genpact Ltd's enterprise value for the quarter that ended in Dec. 2016 was $5,317 Mil. Genpact Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $341 Mil. Genpact Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.41%.


Definition

Genpact Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=5177.389/340.777
=15.19

Genpact Ltd's current Enterprise Value is $5,177 Mil.
Genpact Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 75.721 (Mar. 2016 ) + 85.337 (Jun. 2016 ) + 91.185 (Sep. 2016 ) + 88.534 (Dec. 2016 ) = $341 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).

Genpact Ltd'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 )
=340.777/5317.1076
=6.41 %

Genpact Ltd's Enterprise Value for the quarter that ended in Dec. 2016 was $5,317 Mil.
Genpact Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 75.721 (Mar. 2016 ) + 85.337 (Jun. 2016 ) + 91.185 (Sep. 2016 ) + 88.534 (Dec. 2016 ) = $341 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.

Genpact Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 31.719.5417.5315.4112.1012.9413.3916.4616.9815.60

Genpact Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 13.6016.4619.7217.1917.2716.9817.4417.1915.1515.60
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