Switch to:
Medtronic Inc (NYSE:MDT)
EV/EBIT
15.60 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Medtronic Inc's enterprise value is $61,008 Mil. Medtronic Inc's operating income for the trailing twelve months (TTM) ended in Apr. 2014 was $3,910 Mil. Therefore, Medtronic Inc's EV/EBIT ratio for today is 15.60.

MDT' s 10-Year EV/EBIT Range
Min: 8.8   Max: 23.8
Current: 15.6

8.8
23.8

During the past 13 years, the highest EV/EBIT Ratio of Medtronic Inc was 23.80. The lowest was 8.80. And the median was 16.10.

MDT's EV/EBITis ranked higher than
89% of the 414 Companies
in the Global Medical Devices industry.

( Industry Median: 57.20 vs. MDT: 15.60 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Medtronic Inc's enterprise value for the quarter that ended in Apr. 2014 was $56,555 Mil. Medtronic Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2014 was $3,910 Mil. Medtronic Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2014 was 6.92%.


Definition

Medtronic Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=61008.006/3910
=15.60

Medtronic Inc's current Enterprise Value is $61,008 Mil.
Medtronic Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2014 was 1153 (Jul. 2013 ) + 1182 (Oct. 2013 ) + 1025 (Jan. 2014 ) + 550 (Apr. 2014 ) = $3,910 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).

Medtronic Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Apr. 2014 )
=3910/56554.6442
=6.91 %

Medtronic Inc's Enterprise Value for the quarter that ended in Apr. 2014 was $56,555 Mil.
Medtronic Inc's Operating Income for the trailing twelve months (TTM) ended in Apr. 2014 was 1153 (Jul. 2013 ) + 1182 (Oct. 2013 ) + 1025 (Jan. 2014 ) + 550 (Apr. 2014 ) = $3,910 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.

Medtronic Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev2ebit 18.2418.6517.0720.7916.7813.3514.139.2410.8414.46

Medtronic Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ev2ebit 11.189.2411.1812.3613.1410.8412.6112.2912.4114.46
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide