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Nike Inc (NYSE:NKE)
EV/EBIT
17.95 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Nike Inc's enterprise value is $66,070 Mil. Nike Inc's operating income for the trailing twelve months (TTM) ended in May. 2014 was $3,680 Mil. Therefore, Nike Inc's EV/EBIT ratio for today is 17.95.

NKE' s 10-Year EV/EBIT Range
Min: 8.1   Max: 19.2
Current: 17.95

8.1
19.2

During the past 13 years, the highest EV/EBIT Ratio of Nike Inc was 19.20. The lowest was 8.10. And the median was 13.00.

NKE's EV/EBITis ranked higher than
67% of the 803 Companies
in the Global Footwear & Accessories industry.

( Industry Median: 18.36 vs. NKE: 17.95 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Nike Inc's enterprise value for the quarter that ended in May. 2014 was $63,143 Mil. Nike Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was $3,680 Mil. Nike Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2014 was 5.83%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=66070.327/3680
=17.95

Nike Inc's current Enterprise Value is $66,070 Mil.
Nike Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 1076 (Aug. 2013 ) + 738 (Nov. 2013 ) + 937 (Feb. 2014 ) + 929 (May. 2014 ) = $3,680 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).

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

Earnings Yield (Joel Greenblatt) (Q: May. 2014 )=Operating Income (TTM)/Enterprise Value (Q: May. 2014 )
=3680/63142.7
=5.83 %

Nike Inc's Enterprise Value for the quarter that ended in May. 2014 was $63,143 Mil.
Nike Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 1076 (Aug. 2013 ) + 738 (Nov. 2013 ) + 937 (Feb. 2014 ) + 929 (May. 2014 ) = $3,680 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.

Nike Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
ev2ebit 10.808.9712.2812.9612.0211.0011.2113.4815.6017.16

Nike Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebit 13.4813.4812.3411.9714.4615.6014.5718.5217.8717.16
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