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International Business Machines Corp (NYSE:IBM)
EV/EBIT
9.55 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, International Business Machines Corp's enterprise value is $192,150 Mil. International Business Machines Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $20,115 Mil. Therefore, International Business Machines Corp's EV/EBIT ratio for today is 9.55.

IBM' s 10-Year EV/EBIT Range
Min: 7.9   Max: 18.6
Current: 9.6

7.9
18.6

During the past 13 years, the highest EV/EBIT Ratio of International Business Machines Corp was 18.60. The lowest was 7.90. And the median was 12.10.

IBM's EV/EBITis ranked higher than
74% of the 1138 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.31 vs. IBM: 9.60 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). International Business Machines Corp's enterprise value for the quarter that ended in Mar. 2015 was $188,812 Mil. International Business Machines Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $20,115 Mil. International Business Machines Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 10.65%.


Definition

International Business Machines Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=192149.926/20115
=9.55

International Business Machines Corp's current Enterprise Value is $192,150 Mil.
International Business Machines Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 5307 (Jun. 2014 ) + 4487 (Sep. 2014 ) + 7212 (Dec. 2014 ) + 3109 (Mar. 2015 ) = $20,115 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).

International Business Machines Corp'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 )
=20115/188812.41
=10.65 %

International Business Machines Corp's Enterprise Value for the quarter that ended in Mar. 2015 was $188,812 Mil.
International Business Machines Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 5307 (Jun. 2014 ) + 4487 (Sep. 2014 ) + 7212 (Dec. 2014 ) + 3109 (Mar. 2015 ) = $20,115 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.

International Business Machines Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 11.0711.6411.187.709.889.8110.9010.5711.209.42

International Business Machines Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 10.5711.6711.0610.8411.2011.5710.4311.049.429.39
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