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

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Level 3 Communications Inc's enterprise value is $16,785 Mil. Level 3 Communications Inc's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $666 Mil. Therefore, Level 3 Communications Inc's EV/EBIT ratio for today is 25.60.

LVLT' s 10-Year EV/EBIT Range
Min: 20   Max: 2072
Current: 25.6

20
2072

During the past 13 years, the highest EV/EBIT Ratio of Level 3 Communications Inc was 2072.00. The lowest was 20.00. And the median was 41.30.

LVLT's EV/EBITis ranked lower than
55% of the 711 Companies
in the Global Telecom Services industry.

( Industry Median: 14.25 vs. LVLT: 25.60 )

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 Dec. 2013 was $15,148 Mil. Level 3 Communications Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $666 Mil. Level 3 Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 4.40%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=16785.253/666
=25.20

Level 3 Communications Inc's current Enterprise Value is $16,785 Mil.
Level 3 Communications Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 155 (Mar. 2013 ) + 140 (Jun. 2013 ) + 152 (Sep. 2013 ) + 219 (Dec. 2013 ) = $666 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 Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=666/15148.1437
=4.40 %

Level 3 Communications Inc's Enterprise Value for the quarter that ended in Dec. 2013 was $15,148 Mil.
Level 3 Communications Inc's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 155 (Mar. 2013 ) + 140 (Jun. 2013 ) + 152 (Sep. 2013 ) + 219 (Dec. 2013 ) = $666 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.

Level 3 Communications Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.000.000.00219.050.000.00212.7822.2622.74

Level 3 Communications Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 1,976.24212.7877.4341.4529.9022.2620.2420.3222.0522.74
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