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International Business Machines Corp (NYSE:IBM)
EV/EBIT
13.33 (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 $178,055 Mil. International Business Machines Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $13,362 Mil. Therefore, International Business Machines Corp's EV/EBIT ratio for today is 13.33.

IBM' s EV/EBIT Range Over the Past 10 Years
Min: 7.5   Max: 14.2
Current: 14.1

7.5
14.2

During the past 13 years, the highest EV/EBIT Ratio of International Business Machines Corp was 14.20. The lowest was 7.50. And the median was 10.90.

IBM's EV/EBIT is ranked higher than
61% of the 1333 Companies
in the Global Information Technology Services industry.

( Industry Median: 16.49 vs. IBM: 14.10 )

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 Jun. 2016 was $179,767 Mil. International Business Machines Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $13,362 Mil. International Business Machines Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2016 was 7.43%.


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)
=178055.385/13362
=13.33

International Business Machines Corp's current Enterprise Value is $178,055 Mil.
International Business Machines Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was 3738 (Sep. 2015 ) + 5227 (Dec. 2015 ) + 1181 (Mar. 2016 ) + 3216 (Jun. 2016 ) = $13,362 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 Jun. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2016 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2016 )
=13362/179766.7288
=7.43 %

International Business Machines Corp's Enterprise Value for the quarter that ended in Jun. 2016 was $179,767 Mil.
International Business Machines Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was 3738 (Sep. 2015 ) + 5227 (Dec. 2015 ) + 1181 (Mar. 2016 ) + 3216 (Jun. 2016 ) = $13,362 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 11.6411.187.709.889.8110.9010.2711.209.3510.04

International Business Machines Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ev2ebit 11.5710.3410.959.359.289.899.2910.0412.1713.45
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