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GuruFocus has detected 5 Warning Signs with Northern Trust Corp $NTRS.
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Northern Trust Corp (NAS:NTRS)
EV-to-EBIT
16.23 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Northern Trust Corp's enterprise value is $24,621 Mil. Northern Trust Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,517 Mil. Therefore, Northern Trust Corp's EV/EBIT ratio for today is 16.23.

NTRS' s EV-to-EBIT Range Over the Past 10 Years
Min: -23.7   Max: 16.8
Current: 16.23

-23.7
16.8

During the past 13 years, the highest EV/EBIT Ratio of Northern Trust Corp was 16.80. The lowest was -23.70. And the median was -6.20.

NTRS's EV-to-EBIT is ranked lower than
63% of the 1295 Companies
in the Global Asset Management industry.

( Industry Median: 11.90 vs. NTRS: 16.23 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Northern Trust Corp's enterprise value for the quarter that ended in Dec. 2016 was $25,109 Mil. Northern Trust Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,517 Mil. Northern Trust Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.04%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=24620.605/1517.1
=16.23

Northern Trust Corp's current Enterprise Value is $24,621 Mil.
Northern Trust Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 359.2 (Mar. 2016 ) + 394.7 (Jun. 2016 ) + 373.7 (Sep. 2016 ) + 389.5 (Dec. 2016 ) = $1,517 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).

Northern Trust 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 )
=1517.1/25108.63
=6.04 %

Northern Trust Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $25,109 Mil.
Northern Trust Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 359.2 (Mar. 2016 ) + 394.7 (Jun. 2016 ) + 373.7 (Sep. 2016 ) + 389.5 (Dec. 2016 ) = $1,517 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.

Northern Trust Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -2.44-8.06-8.73-10.53-22.97-15.42-2.17-11.917.3916.55

Northern Trust Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 3.02-11.912.511.313.417.39-8.498.46-6.4316.55
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