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Southwest Airlines Co (NYSE:LUV)
EV/EBIT
9.18 (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 $24,103 Mil. Southwest Airlines Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $2,627 Mil. Therefore, Southwest Airlines Co's EV/EBIT ratio for today is 9.18.

LUV' s 10-Year EV/EBIT Range
Min: 6.8   Max: 51.9
Current: 9.15

6.8
51.9

During the past 13 years, the highest EV/EBIT Ratio of Southwest Airlines Co was 51.90. The lowest was 6.80. And the median was 13.00.

LUV's EV/EBITis ranked higher than
67% of the 54 Companies
in the Global Airlines industry.

( Industry Median: 12.10 vs. LUV: 9.15 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Southwest Airlines Co's enterprise value for the quarter that ended in Jun. 2015 was $21,373 Mil. Southwest Airlines Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $2,627 Mil. Southwest Airlines Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 12.29%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=24102.824/2627
=9.18

Southwest Airlines Co's current Enterprise Value is $24,103 Mil.
Southwest Airlines Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 550 (Sep. 2014 ) + 329 (Dec. 2014 ) + 749 (Mar. 2015 ) + 999 (Jun. 2015 ) = $2,627 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 Jun. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=2627/21373.2224
=12.29 %

Southwest Airlines Co's Enterprise Value for the quarter that ended in Jun. 2015 was $21,373 Mil.
Southwest Airlines Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 550 (Sep. 2014 ) + 329 (Dec. 2014 ) + 749 (Mar. 2015 ) + 999 (Jun. 2015 ) = $2,627 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebit 0.000.000.000.000.000.000.000.000.000.00

Southwest Airlines Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 13.1411.948.7210.0010.849.3911.4114.7112.158.14
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