Switch to:
Legg Mason Inc (NYSE:LM)
EV/EBIT
11.11 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Legg Mason Inc's enterprise value is $4,744 Mil. Legg Mason Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $427 Mil. Therefore, Legg Mason Inc's EV/EBIT ratio for today is 11.11.

LM' s 10-Year EV/EBIT Range
Min: -12.2   Max: 30.7
Current: 11.15

-12.2
30.7

During the past 13 years, the highest EV/EBIT Ratio of Legg Mason Inc was 30.70. The lowest was -12.20. And the median was 12.20.

LM's EV/EBITis ranked higher than
57% of the 970 Companies
in the Global Asset Management industry.

( Industry Median: 13.41 vs. LM: 11.15 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Legg Mason Inc's enterprise value for the quarter that ended in Jun. 2015 was $5,727 Mil. Legg Mason Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $427 Mil. Legg Mason Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 7.45%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4744.108/426.919
=11.11

Legg Mason Inc's current Enterprise Value is $4,744 Mil.
Legg Mason Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 23.8 (Sep. 2014 ) + 130.248 (Dec. 2014 ) + 140.893 (Mar. 2015 ) + 131.978 (Jun. 2015 ) = $427 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).

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

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=426.919/5726.8919
=7.45 %

Legg Mason Inc's Enterprise Value for the quarter that ended in Jun. 2015 was $5,727 Mil.
Legg Mason Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 23.8 (Sep. 2014 ) + 130.248 (Dec. 2014 ) + 140.893 (Mar. 2015 ) + 131.978 (Jun. 2015 ) = $427 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.

Legg Mason Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ev2ebit 21.3211.1915.11-1.289.1411.579.50-8.9511.5214.18

Legg Mason Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit -8.95-10.98-11.5412.3611.5211.3613.7814.4414.1813.41
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)

GuruFocus Premium Plus Membership

FEEDBACK