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Level 3 Communications Inc (NYSE:LVLT)
EV/EBIT
34.77 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Level 3 Communications Inc's enterprise value is $27,711 Mil. Level 3 Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was $797 Mil. Therefore, Level 3 Communications Inc's EV/EBIT ratio for today is 34.77.

LVLT' s EV/EBIT Range Over the Past 10 Years
Min: -374.2   Max: 884.5
Current: 34.04

-374.2
884.5

During the past 13 years, the highest EV/EBIT Ratio of Level 3 Communications Inc was 884.50. The lowest was -374.20. And the median was 22.10.

LVLT's EV/EBIT is ranked lower than
83% of the 331 Companies
in the Global Telecom Services industry.

( Industry Median: 15.44 vs. LVLT: 34.04 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Level 3 Communications Inc's enterprise value for the quarter that ended in Sep. 2015 was $25,873 Mil. Level 3 Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was $797 Mil. Level 3 Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2015 was 3.08%.


Definition

Level 3 Communications Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=27711.397/797
=34.77

Level 3 Communications Inc's current Enterprise Value is $27,711 Mil.
Level 3 Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was 158 (Dec. 2014 ) + 307 (Mar. 2015 ) + 170 (Jun. 2015 ) + 162 (Sep. 2015 ) = $797 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).

Level 3 Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2015 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2015 )
=797/25872.5817
=3.08 %

Level 3 Communications Inc's Enterprise Value for the quarter that ended in Sep. 2015 was $25,873 Mil.
Level 3 Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2015 was 158 (Dec. 2014 ) + 307 (Mar. 2015 ) + 170 (Jun. 2015 ) + 162 (Sep. 2015 ) = $797 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.

Level 3 Communications Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit -104.74-19.3526.32-369.98-59.28-158.0635.6526.8430.950.00

Level 3 Communications Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebit 25.5026.8422.9322.6621.8230.9531.7032.8632.460.00
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