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GlaxoSmithKline PLC (NYSE:GSK)
EV/EBIT
5.69 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, GlaxoSmithKline PLC's enterprise value is $101,976 Mil. GlaxoSmithKline PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $17,907 Mil. Therefore, GlaxoSmithKline PLC's EV/EBIT ratio for today is 5.69.

GSK' s 10-Year EV/EBIT Range
Min: 6.9   Max: 240.2
Current: 6.02

6.9
240.2

During the past 13 years, the highest EV/EBIT Ratio of GlaxoSmithKline PLC was 240.20. The lowest was 6.90. And the median was 12.00.

GSK's EV/EBITis ranked higher than
94% of the 488 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 24.19 vs. GSK: 6.02 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). GlaxoSmithKline PLC's enterprise value for the quarter that ended in Jun. 2015 was $0 Mil. GlaxoSmithKline PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $17,907 Mil. GlaxoSmithKline PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was %.


Definition

GlaxoSmithKline PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=101976.104/17906.794294
=5.69

GlaxoSmithKline PLC's current Enterprise Value is $101,976 Mil.
GlaxoSmithKline PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1184.03908795 (Sep. 2014 ) + 1065.72769953 (Dec. 2014 ) + 15118.0866966 (Mar. 2015 ) + 538.940809969 (Jun. 2015 ) = $17,907 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).

GlaxoSmithKline PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=17906.794294/0
= %

GlaxoSmithKline PLC's Enterprise Value for the quarter that ended in Jun. 2015 was $0 Mil.
GlaxoSmithKline PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 1184.03908795 (Sep. 2014 ) + 1065.72769953 (Dec. 2014 ) + 15118.0866966 (Mar. 2015 ) + 538.940809969 (Jun. 2015 ) = $17,907 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

GlaxoSmithKline PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 12.5910.229.6310.039.0618.579.9010.9512.4524.27

GlaxoSmithKline PLC Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 13.3314.6414.0012.4513.2913.8414.7424.276.845.96
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