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Herbalife Ltd (NYSE:HLF)
EV/EBIT
8.40 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Herbalife Ltd's enterprise value is $4,478 Mil. Herbalife Ltd's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $533 Mil. Therefore, Herbalife Ltd's EV/EBIT ratio for today is 8.40.

HLF' s 10-Year EV/EBIT Range
Min: 3.1   Max: 15.3
Current: 8.5

3.1
15.3

During the past 11 years, the highest EV/EBIT Ratio of Herbalife Ltd was 15.30. The lowest was 3.10. And the median was 10.00.

HLF's EV/EBITis ranked higher than
91% of the 1817 Companies
in the Global Household & Personal Products industry.

( Industry Median: 19.09 vs. HLF: 8.50 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Herbalife Ltd's enterprise value for the quarter that ended in Sep. 2014 was $5,001 Mil. Herbalife Ltd's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $533 Mil. Herbalife Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 10.67%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=4478.485/533.392
=8.40

Herbalife Ltd's current Enterprise Value is $4,478 Mil.
Herbalife Ltd's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 181.859 (Dec. 2013 ) + 127.603 (Mar. 2014 ) + 196.288 (Jun. 2014 ) + 27.642 (Sep. 2014 ) = $533 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).

Herbalife Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=533.392/5000.566
=10.67 %

Herbalife Ltd's Enterprise Value for the quarter that ended in Sep. 2014 was $5,001 Mil.
Herbalife Ltd's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 181.859 (Dec. 2013 ) + 127.603 (Mar. 2014 ) + 196.288 (Jun. 2014 ) + 27.642 (Sep. 2014 ) = $533 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.

Herbalife Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 8.2511.1011.269.215.169.0810.3610.545.5610.76

Herbalife Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 9.058.325.566.086.889.9910.769.2010.019.38
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