Switch to:
International Business Machines Corp (NYSE:IBM)
EV/EBIT
12.23 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, International Business Machines Corp's enterprise value is $220,432 Mil. International Business Machines Corp's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $18,074 Mil. Therefore, International Business Machines Corp's EV/EBIT ratio for today is 12.23.

IBM' s 10-Year EV/EBIT Range
Min: 3.1   Max: 18.8
Current: 12.23

3.1
18.8

During the past 13 years, the highest EV/EBIT Ratio of International Business Machines Corp was 18.80. The lowest was 3.10. And the median was 12.40.

IBM's EV/EBITis ranked higher than
79% of the 2708 Companies
in the Global Computer Systems industry.

( Industry Median: 23.45 vs. IBM: 12.23 )

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. 2014 was $234,857 Mil. International Business Machines Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $18,074 Mil. International Business Machines Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 7.70%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=220432.275/18074
=12.20

International Business Machines Corp's current Enterprise Value is $220,432 Mil.
International Business Machines Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 3904 (Jun. 2013 ) + 4657 (Sep. 2013 ) + 6760 (Dec. 2013 ) + 2753 (Mar. 2014 ) = $18,074 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. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=18074/234856.5366
=7.70 %

International Business Machines Corp's Enterprise Value for the quarter that ended in Mar. 2014 was $234,857 Mil.
International Business Machines Corp's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 3904 (Jun. 2013 ) + 4657 (Sep. 2013 ) + 6760 (Dec. 2013 ) + 2753 (Mar. 2014 ) = $18,074 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.

International Business Machines Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 18.3515.0713.2612.498.146.083.4211.5011.5612.38

International Business Machines Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebit 12.7211.9212.8811.5612.7312.0711.5412.3812.9911.57
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK