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GuruFocus has detected 5 Warning Signs with International Game Technology PLC $IGT.
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International Game Technology PLC (NYSE:IGT)
EV-to-EBIT
15.54 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, International Game Technology PLC's enterprise value is $12,320 Mil. International Game Technology PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $793 Mil. Therefore, International Game Technology PLC's EV/EBIT ratio for today is 15.54.

IGT' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.2   Max: 51.4
Current: 15.56

5.2
51.4

During the past 13 years, the highest EV/EBIT Ratio of International Game Technology PLC was 51.40. The lowest was 5.20. And the median was 11.60.

IGT's EV-to-EBIT is ranked higher than
56% of the 911 Companies
in the Global Gambling industry.

( Industry Median: 16.94 vs. IGT: 15.56 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). International Game Technology PLC's enterprise value for the quarter that ended in Dec. 2016 was $12,753 Mil. International Game Technology PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $793 Mil. International Game Technology PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.22%.


Definition

International Game Technology PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=12319.506/792.681
=15.54

International Game Technology PLC's current Enterprise Value is $12,320 Mil.
International Game Technology PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 23.308 (Mar. 2016 ) + 261.052 (Jun. 2016 ) + 148.836 (Sep. 2016 ) + 359.485 (Dec. 2016 ) = $793 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Game Technology PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=792.681/12753.35392
=6.22 %

International Game Technology PLC's Enterprise Value for the quarter that ended in Dec. 2016 was $12,753 Mil.
International Game Technology PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 23.308 (Mar. 2016 ) + 261.052 (Jun. 2016 ) + 148.836 (Sep. 2016 ) + 359.485 (Dec. 2016 ) = $793 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

International Game Technology PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 17.8411.2914.3820.5511.288.2610.9210.0525.7216.09

International Game Technology PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 9.7310.0516.3844.8049.7125.7227.4817.7419.5316.09
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