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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Herbalife Ltd's enterprise value is $6,262 Mil. Herbalife Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $620 Mil. Therefore, Herbalife Ltd's EV/EBIT ratio for today is 10.10.

HLF' s EV/EBIT Range Over the Past 10 Years
Min: 3.1   Max: 15.2
Current: 10.11

3.1
15.2

During the past 13 years, the highest EV/EBIT Ratio of Herbalife Ltd was 15.20. The lowest was 3.10. And the median was 9.90.

HLF's EV/EBIT is ranked higher than
71% of the 1292 Companies
in the Global Household & Personal Products industry.

( Industry Median: 15.36 vs. HLF: 10.11 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Herbalife Ltd's enterprise value for the quarter that ended in Mar. 2016 was $6,341 Mil. Herbalife Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $620 Mil. Herbalife Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 9.78%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=6262.488/619.9
=10.10

Herbalife Ltd's current Enterprise Value is $6,262 Mil.
Herbalife Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 144.9 (Jun. 2015 ) + 163 (Sep. 2015 ) + 142.6 (Dec. 2015 ) + 169.4 (Mar. 2016 ) = $620 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 Mar. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=619.9/6341.368
=9.78 %

Herbalife Ltd's Enterprise Value for the quarter that ended in Mar. 2016 was $6,341 Mil.
Herbalife Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 144.9 (Jun. 2015 ) + 163 (Sep. 2015 ) + 142.6 (Dec. 2015 ) + 169.4 (Mar. 2016 ) = $620 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.

Herbalife Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 11.319.215.168.9410.2510.425.5310.649.019.74

Herbalife Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 10.649.129.919.529.019.7012.929.699.7410.23
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