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Microsoft Corp (NAS:MSFT)
EV/EBIT
10.73 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Microsoft Corp's enterprise value is $295,607 Mil. Microsoft Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $27,543 Mil. Therefore, Microsoft Corp's EV/EBIT ratio for today is 10.73.

MSFT' s 10-Year EV/EBIT Range
Min: 5.2   Max: 28
Current: 10.99

5.2
28

During the past 13 years, the highest EV/EBIT Ratio of Microsoft Corp was 28.00. The lowest was 5.20. And the median was 10.40.

MSFT's EV/EBITis ranked higher than
68% of the 1138 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 17.31 vs. MSFT: 10.99 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Microsoft Corp's enterprise value for the quarter that ended in Mar. 2015 was $266,264 Mil. Microsoft Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was $27,543 Mil. Microsoft Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 10.34%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=295607.182/27543
=10.73

Microsoft Corp's current Enterprise Value is $295,607 Mil.
Microsoft Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 6746 (Jun. 2014 ) + 6057 (Sep. 2014 ) + 8012 (Dec. 2014 ) + 6728 (Mar. 2015 ) = $27,543 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).

Microsoft Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2015 )
=27543/266264.015
=10.34 %

Microsoft Corp's Enterprise Value for the quarter that ended in Mar. 2015 was $266,264 Mil.
Microsoft Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2015 was 6746 (Jun. 2014 ) + 6057 (Sep. 2014 ) + 8012 (Dec. 2014 ) + 6728 (Mar. 2015 ) = $27,543 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Microsoft Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebit 15.6812.3613.729.519.376.706.129.068.239.87

Microsoft Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 8.308.248.237.528.759.779.8711.3511.449.67
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