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Southwest Airlines Co (NYSE:LUV)
EV/EBIT
7.32 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Southwest Airlines Co's enterprise value is $26,762 Mil. Southwest Airlines Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $3,657 Mil. Therefore, Southwest Airlines Co's EV/EBIT ratio for today is 7.32.

LUV' s EV/EBIT Range Over the Past 10 Years
Min: -8504.6   Max: 37
Current: 7.32

-8504.6
37

During the past 13 years, the highest EV/EBIT Ratio of Southwest Airlines Co was 37.00. The lowest was -8504.60. And the median was 11.45.

LUV's EV/EBIT is ranked higher than
64% of the 56 Companies
in the Global Airlines industry.

( Industry Median: 9.09 vs. LUV: 7.32 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Southwest Airlines Co's enterprise value for the quarter that ended in Mar. 2016 was $28,312 Mil. Southwest Airlines Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was $3,657 Mil. Southwest Airlines Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 was 12.92%.


Definition

Southwest Airlines Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=26761.612/3657
=7.32

Southwest Airlines Co's current Enterprise Value is $26,762 Mil.
Southwest Airlines Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 999 (Jun. 2015 ) + 955 (Sep. 2015 ) + 868 (Dec. 2015 ) + 835 (Mar. 2016 ) = $3,657 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).

Southwest Airlines Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2016 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2016 )
=3657/28311.536
=12.92 %

Southwest Airlines Co's Enterprise Value for the quarter that ended in Mar. 2016 was $28,312 Mil.
Southwest Airlines Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2016 was 999 (Jun. 2015 ) + 955 (Sep. 2015 ) + 868 (Dec. 2015 ) + 835 (Mar. 2016 ) = $3,657 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.

Southwest Airlines Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 13.007.0421.0633.9810.6014.309.9010.0014.717.89

Southwest Airlines Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebit 10.0010.849.3911.4114.7112.158.148.027.897.74
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