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Google Inc (NAS:GOOG)
EV/EBIT
23.97 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Google Inc's enterprise value is $345,220 Mil. Google Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $14,604 Mil. Therefore, Google Inc's EV/EBIT ratio for today is 23.97.

GOOG' s 10-Year EV/EBIT Range
Min: 11.1   Max: 72.6
Current: 23.97

11.1
72.6

During the past 13 years, the highest EV/EBIT Ratio of Google Inc was 72.60. The lowest was 11.10. And the median was 20.30.

GOOG's EV/EBITis ranked higher than
76% of the 412 Companies
in the Global Internet Content & Information industry.

( Industry Median: 48.40 vs. GOOG: 23.97 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Google Inc's enterprise value for the quarter that ended in Mar. 2014 was $321,655 Mil. Google Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $14,604 Mil. Google Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 4.53%.


Definition

Google Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=345220.000/14604
=23.64

Google Inc's current Enterprise Value is $345,220 Mil.
Google Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 3123 (Jun. 2013 ) + 3444 (Sep. 2013 ) + 3922 (Dec. 2013 ) + 4115 (Mar. 2014 ) = $14,604 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).

Google Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=14604/321654.6827
=4.54 %

Google Inc's Enterprise Value for the quarter that ended in Mar. 2014 was $321,655 Mil.
Google Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 3123 (Jun. 2013 ) + 3444 (Sep. 2013 ) + 3922 (Dec. 2013 ) + 4115 (Mar. 2014 ) = $14,604 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.

Google Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 50.6656.8036.8939.7512.2120.7515.3514.4314.9622.68

Google Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 12.8711.5816.1914.9616.6118.7517.6122.6822.060.00
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