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Hospira Inc (NYSE:HSP)
EV/EBIT
32.73 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Hospira Inc's enterprise value is $16,367 Mil. Hospira Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $500 Mil. Therefore, Hospira Inc's EV/EBIT ratio for today is 32.73.

HSP' s 10-Year EV/EBIT Range
Min: -1403.5   Max: 508.2
Current: 32.73

-1403.5
508.2

During the past 13 years, the highest EV/EBIT Ratio of Hospira Inc was 508.20. The lowest was -1403.50. And the median was 18.50.

HSP's EV/EBITis ranked higher than
78% of the 1294 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 42.19 vs. HSP: 32.73 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hospira Inc's enterprise value for the quarter that ended in Mar. 2015 was $16,276 Mil. Hospira Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was $500 Mil. Hospira Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 3.07%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=16366.500/500.1
=32.73

Hospira Inc's current Enterprise Value is $16,367 Mil.
Hospira Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 99.5 (Jun. 2014 ) + 227.5 (Sep. 2014 ) + 39.7 (Dec. 2014 ) + 133.4 (Mar. 2015 ) = $500 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).

Hospira Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2015 )
=500.1/16276.484
=3.07 %

Hospira Inc's Enterprise Value for the quarter that ended in Mar. 2015 was $16,276 Mil.
Hospira Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 99.5 (Jun. 2014 ) + 227.5 (Sep. 2014 ) + 39.7 (Dec. 2014 ) + 133.4 (Mar. 2015 ) = $500 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.

Hospira Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 20.9716.5428.8111.5318.1420.08108.33104.21475.6124.43

Hospira Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 104.21-60.55-142.46-1,326.95475.6135.4634.1320.8824.4332.55
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