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Honda Motor Co Ltd (NYSE:HMC)
EV/EBIT
13.10 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Honda Motor Co Ltd's enterprise value is $110,057 Mil. Honda Motor Co Ltd's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $7,516 Mil. Therefore, Honda Motor Co Ltd's EV/EBIT ratio for today is 13.10.

HMC' s 10-Year EV/EBIT Range
Min: 5.8   Max: 2573.6
Current: 13.1

5.8
2573.6

During the past 13 years, the highest EV/EBIT Ratio of Honda Motor Co Ltd was 2573.60. The lowest was 5.80. And the median was 12.65.

HMC's EV/EBITis ranked higher than
74% of the 1273 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 14.95 vs. HMC: 13.10 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Honda Motor Co Ltd's enterprise value for the quarter that ended in Jun. 2014 was $111,498 Mil. Honda Motor Co Ltd's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $7,516 Mil. Honda Motor Co Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 6.74%.


Definition

Honda Motor Co Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=110056.807/7516.34050289
=14.64

Honda Motor Co Ltd's current Enterprise Value is $110,057 Mil.
Honda Motor Co Ltd's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 1753.61562852 (Sep. 2013 ) + 2202.88933222 (Dec. 2013 ) + 1613.27568369 (Mar. 2014 ) + 1946.55985846 (Jun. 2014 ) = $7,516 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).

Honda Motor Co Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jun. 2014 )
=7516.34050289/111498.404888
=6.74 %

Honda Motor Co Ltd's Enterprise Value for the quarter that ended in Jun. 2014 was $111,498 Mil.
Honda Motor Co Ltd's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was 1753.61562852 (Sep. 2013 ) + 2202.88933222 (Dec. 2013 ) + 1613.27568369 (Mar. 2014 ) + 1946.55985846 (Jun. 2014 ) = $7,516 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.

Honda Motor Co Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebit 7.446.8712.509.1443.8125.0815.1137.5418.8815.27

Honda Motor Co Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 37.5420.7017.3417.7818.8819.7217.9317.7415.2714.84
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