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GuruFocus has detected 8 Warning Signs with Meredith Corp $MDP.
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Meredith Corp (NYSE:MDP)
EV-to-EBIT
16.25 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Meredith Corp's enterprise value is $3,446 Mil. Meredith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $212 Mil. Therefore, Meredith Corp's EV/EBIT ratio for today is 16.25.

MDP' s EV-to-EBIT Range Over the Past 10 Years
Min: -15.6   Max: 24.7
Current: 16.25

-15.6
24.7

During the past 13 years, the highest EV/EBIT Ratio of Meredith Corp was 24.70. The lowest was -15.60. And the median was 10.40.

MDP's EV-to-EBIT is ranked lower than
62% of the 119 Companies
in the Global Publishing industry.

( Industry Median: 12.27 vs. MDP: 16.25 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Meredith Corp's enterprise value for the quarter that ended in Dec. 2016 was $3,265 Mil. Meredith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $212 Mil. Meredith Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.49%.


Definition

Meredith Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3446.220/212.071
=16.25

Meredith Corp's current Enterprise Value is $3,446 Mil.
Meredith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 128.038 (Mar. 2016 ) + -86.554 (Jun. 2016 ) + 60.762 (Sep. 2016 ) + 109.825 (Dec. 2016 ) = $212 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).

Meredith Corp'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 )
=212.071/3265.427
=6.49 %

Meredith Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $3,265 Mil.
Meredith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 128.038 (Mar. 2016 ) + -86.554 (Jun. 2016 ) + 60.762 (Sep. 2016 ) + 109.825 (Dec. 2016 ) = $212 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.

Meredith Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebit 11.737.15-11.189.046.999.5611.6115.1712.8022.84

Meredith Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 13.1915.2714.3512.8012.3912.909.6522.8418.3715.40
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