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GuruFocus has detected 4 Warning Signs with NRG Energy Inc $NRG.
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NRG Energy Inc (NYSE:NRG)
EV-to-EBIT
134.40 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, NRG Energy Inc's enterprise value is $24,998 Mil. NRG Energy Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $186 Mil. Therefore, NRG Energy Inc's EV/EBIT ratio for today is 134.40.

NRG' s EV-to-EBIT Range Over the Past 10 Years
Min: -6.8   Max: 701.1
Current: 134.4

-6.8
701.1

During the past 13 years, the highest EV/EBIT Ratio of NRG Energy Inc was 701.10. The lowest was -6.80. And the median was 13.10.

NRG's EV-to-EBIT is ranked lower than
97% of the 191 Companies
in the Global Utilities - Independent Power Producers industry.

( Industry Median: 15.65 vs. NRG: 134.40 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). NRG Energy Inc's enterprise value for the quarter that ended in Dec. 2016 was $23,523 Mil. NRG Energy Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $186 Mil. NRG Energy Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 0.79%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=24997.762/186
=134.40

NRG Energy Inc's current Enterprise Value is $24,998 Mil.
NRG Energy Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 352 (Mar. 2016 ) + 26 (Jun. 2016 ) + 722 (Sep. 2016 ) + -914 (Dec. 2016 ) = $186 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).

NRG Energy Inc'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 )
=186/23523.2944
=0.79 %

NRG Energy Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $23,523 Mil.
NRG Energy Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 352 (Mar. 2016 ) + 26 (Jun. 2016 ) + 722 (Sep. 2016 ) + -914 (Dec. 2016 ) = $186 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.

NRG Energy Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 10.845.154.547.73672.3523.50115.2623.26-6.14126.47

NRG Energy Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 68.0023.2624.0720.8520.75-6.14-6.52-6.38-6.33126.47
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