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Level 3 Communications Inc (NYSE:LVLT)
EV/EBIT
22.19 (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 $29,404 Mil. Level 3 Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,325 Mil. Therefore, Level 3 Communications Inc's EV/EBIT ratio for today is 22.19.

LVLT' s EV/EBIT Range Over the Past 10 Years
Min: -373.7   Max: 829.3
Current: 22.19

-373.7
829.3

During the past 13 years, the highest EV/EBIT Ratio of Level 3 Communications Inc was 829.30. The lowest was -373.70. And the median was 22.90.

LVLT's EV/EBIT is ranked lower than
65% of the 486 Companies
in the Global Telecom Services industry.

( Industry Median: 16.62 vs. LVLT: 22.19 )

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. 2016 was $25,995 Mil. Level 3 Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $1,325 Mil. Level 3 Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 5.10%.


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)
=29404.030/1325
=22.19

Level 3 Communications Inc's current Enterprise Value is $29,404 Mil.
Level 3 Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 286 (Dec. 2015 ) + 353 (Mar. 2016 ) + 330 (Jun. 2016 ) + 356 (Sep. 2016 ) = $1,325 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=1325/25995.4222
=5.10 %

Level 3 Communications Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $25,995 Mil.
Level 3 Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 286 (Dec. 2015 ) + 353 (Mar. 2016 ) + 330 (Jun. 2016 ) + 356 (Sep. 2016 ) = $1,325 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Level 3 Communications Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit -104.74-19.3526.32-369.98-58.81-158.0635.6526.8430.9531.78

Level 3 Communications Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 22.6621.8230.9531.7032.8632.4631.7830.4024.7819.62
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