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MasterCard Incorporated (NYSE:MA)
EV/EBIT
18.20 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, MasterCard Incorporated's enterprise value is $78,403 Mil. MasterCard Incorporated's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $4,503 Mil. Therefore, MasterCard Incorporated's EV/EBIT ratio for today is 18.20.

MA' s 10-Year EV/EBIT Range
Min: 8.4   Max: 66.8
Current: 18.2

8.4
66.8

During the past 13 years, the highest EV/EBIT Ratio of MasterCard Incorporated was 66.80. The lowest was 8.40. And the median was 16.05.

MA's EV/EBITis ranked higher than
57% of the 119 Companies
in the Global Credit Services industry.

( Industry Median: 16.90 vs. MA: 18.20 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). MasterCard Incorporated's enterprise value for the quarter that ended in Dec. 2013 was $92,575 Mil. MasterCard Incorporated's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $4,503 Mil. MasterCard Incorporated's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 4.86%.


Definition

MasterCard Incorporated's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=78402.914/4503
=17.41

MasterCard Incorporated's current Enterprise Value is $78,403 Mil.
MasterCard Incorporated's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1107 (Mar. 2013 ) + 1228 (Jun. 2013 ) + 1248 (Sep. 2013 ) + 920 (Dec. 2013 ) = $4,503 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).

MasterCard Incorporated'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 )
=4503/92574.79774
=4.86 %

MasterCard Incorporated's Enterprise Value for the quarter that ended in Dec. 2013 was $92,575 Mil.
MasterCard Incorporated's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 1107 (Mar. 2013 ) + 1228 (Jun. 2013 ) + 1248 (Sep. 2013 ) + 920 (Dec. 2013 ) = $4,503 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.

MasterCard Incorporated Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.0048.1223.120.0011.418.5414.7313.3720.56

MasterCard Incorporated Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 10.3514.7316.0315.7816.0313.3714.3014.2315.9220.56
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