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Legg Mason Inc (NYSE:LM)
EV/EBIT
12.15 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Legg Mason Inc's enterprise value is $5,966 Mil. Legg Mason Inc's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $491 Mil. Therefore, Legg Mason Inc's EV/EBIT ratio for today is 12.15.

LM' s 10-Year EV/EBIT Range
Min: -12.2   Max: 30.7
Current: 12.03

-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 12.50.

LM's EV/EBITis ranked higher than
80% of the 1817 Companies
in the Global Asset Management industry.

( Industry Median: 23.05 vs. LM: 12.03 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Legg Mason Inc's enterprise value for the quarter that ended in Sep. 2014 was $5,843 Mil. Legg Mason Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $491 Mil. Legg Mason Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 8.40%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=5965.748/490.894
=12.15

Legg Mason Inc's current Enterprise Value is $5,966 Mil.
Legg Mason Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 121.652 (Dec. 2013 ) + 119.341 (Mar. 2014 ) + 119.546 (Jun. 2014 ) + 130.355 (Sep. 2014 ) = $491 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 Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=490.894/5842.6444
=8.40 %

Legg Mason Inc's Enterprise Value for the quarter that ended in Sep. 2014 was $5,843 Mil.
Legg Mason Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 121.652 (Dec. 2013 ) + 119.341 (Mar. 2014 ) + 119.546 (Jun. 2014 ) + 130.355 (Sep. 2014 ) = $491 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.

Legg Mason Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebit 17.2723.0112.147.27-5.7413.0713.6810.96-9.2212.42

Legg Mason Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 12.1711.73-8.38-9.22-9.28-10.1714.3312.4212.5511.90
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