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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Health Net Inc's enterprise value is $2,577 Mil. Health Net Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $237 Mil. Therefore, Health Net Inc's EV/EBIT ratio for today is 10.86.

HNT' s 10-Year EV/EBIT Range
Min: -152.9   Max: 28.1
Current: 8.33

-152.9
28.1

During the past 13 years, the highest EV/EBIT Ratio of Health Net Inc was 28.10. The lowest was -152.90. And the median was 6.60.

HNT's EV/EBITis ranked higher than
90% of the 21 Companies
in the Global Health Care Plans industry.

( Industry Median: 15.97 vs. HNT: 8.33 )

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. 2015 was $1,717 Mil. Health Net Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $237 Mil. Health Net Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 13.82%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2576.519/237.145
=10.86

Health Net Inc's current Enterprise Value is $2,577 Mil.
Health Net Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 106.628 (Jun. 2014 ) + 30.533 (Sep. 2014 ) + 24.226 (Dec. 2014 ) + 75.758 (Mar. 2015 ) = $237 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. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2015 )
=237.145/1716.5285
=13.82 %

Health Net Inc's Enterprise Value for the quarter that ended in Mar. 2015 was $1,717 Mil.
Health Net Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 106.628 (Jun. 2014 ) + 30.533 (Sep. 2014 ) + 24.226 (Dec. 2014 ) + 75.758 (Mar. 2015 ) = $237 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.

Health Net Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 9.946.708.44-2.0660.463.076.274.962.848.70

Health Net Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 4.964.845.582.662.842.854.755.698.707.24
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