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Health Net Inc (NYSE:HNT)
EV/EBIT
6.18 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Health Net Inc's enterprise value is $1,638 Mil. Health Net Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $251 Mil. Therefore, Health Net Inc's EV/EBIT ratio for today is 6.18.

HNT' s 10-Year EV/EBIT Range
Min: 0.1   Max: 28.1
Current: 6.18

0.1
28.1

During the past 13 years, the highest EV/EBIT Ratio of Health Net Inc was 28.10. The lowest was 0.10. And the median was 6.60.

HNT's EV/EBITis ranked higher than
97% of the 36 Companies
in the Global Health Care Plans industry.

( Industry Median: 12.18 vs. HNT: 6.18 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Health Net Inc's enterprise value for the quarter that ended in Mar. 2014 was $805 Mil. Health Net Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $251 Mil. Health Net Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 31.15%.


Definition

Health Net Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=1638.388/250.61
=6.54

Health Net Inc's current Enterprise Value is $1,638 Mil.
Health Net Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 52.028 (Jun. 2013 ) + 108.58 (Sep. 2013 ) + 28.042 (Dec. 2013 ) + 61.96 (Mar. 2014 ) = $251 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).

Health Net Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=250.61/804.92
=31.13 %

Health Net Inc's Enterprise Value for the quarter that ended in Mar. 2014 was $805 Mil.
Health Net Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 52.028 (Jun. 2013 ) + 108.58 (Sep. 2013 ) + 28.042 (Dec. 2013 ) + 61.96 (Mar. 2014 ) = $251 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.

Health Net Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 18.119.946.708.97-2.660.003.457.5210.183.18

Health Net Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebit 7.528.642.333.9710.186.106.653.003.183.21
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