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GuruFocus has detected 3 Warning Signs with Garmin Ltd $GRMN.
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Garmin Ltd (NAS:GRMN)
EV-to-EBIT
13.76 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Garmin Ltd's enterprise value is $8,587 Mil. Garmin Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $624 Mil. Therefore, Garmin Ltd's EV/EBIT ratio for today is 13.76.

GRMN' s EV-to-EBIT Range Over the Past 10 Years
Min: 2.7   Max: 30.8
Current: 13.76

2.7
30.8

During the past 13 years, the highest EV/EBIT Ratio of Garmin Ltd was 30.80. The lowest was 2.70. And the median was 11.10.

GRMN's EV-to-EBIT is ranked higher than
53% of the 1492 Companies
in the Global Scientific & Technical Instruments industry.

( Industry Median: 14.99 vs. GRMN: 13.76 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Garmin Ltd's enterprise value for the quarter that ended in Dec. 2016 was $8,024 Mil. Garmin Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $624 Mil. Garmin Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 7.78%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=8587.387/623.909
=13.76

Garmin Ltd's current Enterprise Value is $8,587 Mil.
Garmin Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 103.803 (Mar. 2016 ) + 200.674 (Jun. 2016 ) + 159.616 (Sep. 2016 ) + 159.816 (Dec. 2016 ) = $624 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).

Garmin 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 )
=623.909/8024.1055
=7.78 %

Garmin Ltd's Enterprise Value for the quarter that ended in Dec. 2016 was $8,024 Mil.
Garmin Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 103.803 (Mar. 2016 ) + 200.674 (Jun. 2016 ) + 159.616 (Sep. 2016 ) + 159.816 (Dec. 2016 ) = $624 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.

Garmin Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 20.753.476.238.1911.4710.9013.3912.7010.9212.86

Garmin Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 12.5712.7011.2311.519.8410.9212.0112.0913.0412.86
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