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Guidewire Software Inc (NYSE:GWRE)
EV/EBIT
77.40 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Guidewire Software Inc's enterprise value is $2,983.7 Mil. Guidewire Software Inc's operating income for the trailing twelve months (TTM) ended in Jan. 2015 was $38.5 Mil. Therefore, Guidewire Software Inc's EV/EBIT ratio for today is 77.40.

GWRE' s 10-Year EV/EBIT Range
Min: 21.9   Max: 393.2
Current: 75.64

21.9
393.2

During the past 6 years, the highest EV/EBIT Ratio of Guidewire Software Inc was 393.20. The lowest was 21.90. And the median was 105.00.

GWRE's EV/EBITis ranked higher than
68% of the 2995 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 44.26 vs. GWRE: 75.64 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Guidewire Software Inc's enterprise value for the quarter that ended in Jan. 2015 was $2,969.6 Mil. Guidewire Software Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was $38.5 Mil. Guidewire Software Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2015 was 1.30%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=2983.720/38.547
=77.40

Guidewire Software Inc's current Enterprise Value is $2,983.7 Mil.
Guidewire Software Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was -3.398 (Apr. 2014 ) + 42.248 (Jul. 2014 ) + -3.638 (Oct. 2014 ) + 3.335 (Jan. 2015 ) = $38.5 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).

Guidewire Software Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2015 )
=38.547/2969.631
=1.30 %

Guidewire Software Inc's Enterprise Value for the quarter that ended in Jan. 2015 was $2,969.6 Mil.
Guidewire Software Inc's Operating Income for the trailing twelve months (TTM) ended in Jan. 2015 was -3.398 (Apr. 2014 ) + 42.248 (Jul. 2014 ) + -3.638 (Oct. 2014 ) + 3.335 (Jan. 2015 ) = $38.5 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.

Guidewire Software Inc Annual Data

Jul09Jul10Jul11Jul12Jul13Jul14
ev2ebit 0.000.000.000.000.000.000.0049.9679.9476.65

Guidewire Software Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebit 98.17112.62362.3479.94167.03166.75123.0776.6574.3677.04
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