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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Guidewire Software Inc's enterprise value is $3,804.0 Mil. Guidewire Software Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was $16.5 Mil. Therefore, Guidewire Software Inc's EV/EBIT ratio for today is 231.13.

GWRE' s EV/EBIT Range Over the Past 10 Years
Min: 21.9   Max: 335.7
Current: 231.15

21.9
335.7

During the past 8 years, the highest EV/EBIT Ratio of Guidewire Software Inc was 335.70. The lowest was 21.90. And the median was 130.55.

GWRE's EV/EBIT is ranked lower than
95% of the 1189 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 16.90 vs. GWRE: 231.15 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Guidewire Software Inc's enterprise value for the quarter that ended in Apr. 2016 was $3,552.8 Mil. Guidewire Software Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was $16.5 Mil. Guidewire Software Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2016 was 0.46%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3803.989/16.458
=231.13

Guidewire Software Inc's current Enterprise Value is $3,804.0 Mil.
Guidewire Software Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was 23.496 (Jul. 2015 ) + -8.963 (Oct. 2015 ) + 7.702 (Jan. 2016 ) + -5.777 (Apr. 2016 ) = $16.5 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 Apr. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2016 )=EBIT (TTM)/Enterprise Value (Q: Apr. 2016 )
=16.458/3552.7784
=0.46 %

Guidewire Software Inc's Enterprise Value for the quarter that ended in Apr. 2016 was $3,552.8 Mil.
Guidewire Software Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was 23.496 (Jul. 2015 ) + -8.963 (Oct. 2015 ) + 7.702 (Jan. 2016 ) + -5.777 (Apr. 2016 ) = $16.5 Mil.

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


Related Terms

Enterprise Value, 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.

Guidewire Software Inc Annual Data

Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
ev2ebit 0.000.000.000.000.0040.7479.94127.75219.580.00

Guidewire Software Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
ev2ebit 102.38127.75108.54113.06153.16219.58324.71217.23215.870.00
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