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GuruFocus has detected 3 Warning Signs with Lloyds Banking Group PLC $LYG.
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Lloyds Banking Group PLC (NYSE:LYG)
EV-to-EBIT
4.98 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Lloyds Banking Group PLC's enterprise value is $28,715 Mil. Lloyds Banking Group PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $5,769 Mil. Therefore, Lloyds Banking Group PLC's EV/EBIT ratio for today is 4.98.

LYG' s EV-to-EBIT Range Over the Past 10 Years
Min: -156.5   Max: 341.9
Current: 5.42

-156.5
341.9

During the past 13 years, the highest EV/EBIT Ratio of Lloyds Banking Group PLC was 341.90. The lowest was -156.50. And the median was 21.80.

LYG's EV-to-EBIT is ranked higher than
98% of the 1281 Companies
in the Global Banks - Regional - Europe industry.

( Industry Median: 12.38 vs. LYG: 5.42 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Lloyds Banking Group PLC's enterprise value for the quarter that ended in Dec. 2016 was $22,754 Mil. Lloyds Banking Group PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $5,769 Mil. Lloyds Banking Group PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 25.36%.


Definition

Lloyds Banking Group PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=28714.890/5769.41495621
=4.98

Lloyds Banking Group PLC's current Enterprise Value is $28,715 Mil.
Lloyds Banking Group PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1121.08262108 (Mar. 2016 ) + 2367.89772727 (Jun. 2016 ) + 1065.70302234 (Sep. 2016 ) + 1214.73158552 (Dec. 2016 ) = $5,769 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).

Lloyds Banking Group PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=5769.41495621/22753.6811486
=25.36 %

Lloyds Banking Group PLC's Enterprise Value for the quarter that ended in Dec. 2016 was $22,754 Mil.
Lloyds Banking Group PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1121.08262108 (Mar. 2016 ) + 2367.89772727 (Jun. 2016 ) + 1065.70302234 (Sep. 2016 ) + 1214.73158552 (Dec. 2016 ) = $5,769 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.

Lloyds Banking Group PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 76.9616.74251.045.1323.3523.22304.5717.6110.874.46

Lloyds Banking Group PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 339.4817.6155.0045.26-3.1610.879.70-3.95-2.614.46
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