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GuruFocus has detected 6 Warning Signs with Mercury Systems Inc $MRCY.
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Mercury Systems Inc (NAS:MRCY)
EV-to-EBIT
48.63 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Mercury Systems Inc's enterprise value is $1,708.0 Mil. Mercury Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $35.1 Mil. Therefore, Mercury Systems Inc's EV/EBIT ratio for today is 48.63.

MRCY' s EV-to-EBIT Range Over the Past 10 Years
Min: -264.7   Max: 141.2
Current: 48.63

-264.7
141.2

During the past 13 years, the highest EV/EBIT Ratio of Mercury Systems Inc was 141.20. The lowest was -264.70. And the median was 10.75.

MRCY's EV-to-EBIT is ranked lower than
89% of the 2054 Companies
in the Global Computer Systems industry.

( Industry Median: 16.00 vs. MRCY: 48.63 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Mercury Systems Inc's enterprise value for the quarter that ended in Mar. 2017 was $1,788.0 Mil. Mercury Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $35.1 Mil. Mercury Systems Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 1.96%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=1708.027/35.126
=48.63

Mercury Systems Inc's current Enterprise Value is $1,708.0 Mil.
Mercury Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 9.752 (Jun. 2016 ) + 4.382 (Sep. 2016 ) + 8.881 (Dec. 2016 ) + 12.111 (Mar. 2017 ) = $35.1 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).

Mercury Systems Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=35.126/1787.956
=1.96 %

Mercury Systems Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $1,788.0 Mil.
Mercury Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 9.752 (Jun. 2016 ) + 4.382 (Sep. 2016 ) + 8.881 (Dec. 2016 ) + 12.111 (Mar. 2017 ) = $35.1 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.

Mercury Systems Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebit -8.3459.6518.1411.1214.358.56-9.94-52.4321.2040.52

Mercury Systems Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 107.9140.1921.2020.9122.1523.9440.5238.8444.3250.90
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