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GuruFocus has detected 1 Warning Sign with NCR Corp $NCR.
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NCR Corp (NYSE:NCR)
EV-to-EBIT
14.19 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, NCR Corp's enterprise value is $7,793 Mil. NCR Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $549 Mil. Therefore, NCR Corp's EV/EBIT ratio for today is 14.19.

NCR' s EV-to-EBIT Range Over the Past 10 Years
Min: -123.3   Max: 1093.8
Current: 14.19

-123.3
1093.8

During the past 13 years, the highest EV/EBIT Ratio of NCR Corp was 1093.80. The lowest was -123.30. And the median was 14.30.

NCR's EV-to-EBIT is ranked higher than
58% of the 1205 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.49 vs. NCR: 14.19 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). NCR Corp's enterprise value for the quarter that ended in Dec. 2016 was $7,611 Mil. NCR Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $549 Mil. NCR Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 7.21%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=7793.054/549
=14.19

NCR Corp's current Enterprise Value is $7,793 Mil.
NCR Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 91 (Mar. 2016 ) + 148 (Jun. 2016 ) + 181 (Sep. 2016 ) + 129 (Dec. 2016 ) = $549 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).

NCR 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 )
=549/7610.776
=7.21 %

NCR Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $7,611 Mil.
NCR Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 91 (Mar. 2016 ) + 148 (Jun. 2016 ) + 181 (Sep. 2016 ) + 129 (Dec. 2016 ) = $549 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.

NCR Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 15.035.9819.5514.51-20.426.8512.9625.2679.2713.86

NCR Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 15.2925.2626.78-64.26973.7579.2785.5813.2713.5313.86
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