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Northeast Utilities (NYSE:NU)
EV/EBIT
14.98 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Northeast Utilities's enterprise value is $23,705 Mil. Northeast Utilities's operating income for the trailing twelve months (TTM) ended in Mar. 2014 was $1,578 Mil. Therefore, Northeast Utilities's EV/EBIT ratio for today is 14.98.

NU' s 10-Year EV/EBIT Range
Min: 9.2   Max: 57.2
Current: 14.98

9.2
57.2

During the past 13 years, the highest EV/EBIT Ratio of Northeast Utilities was 57.20. The lowest was 9.20. And the median was 14.90.

NU's EV/EBITis ranked higher than
82% of the 860 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 17.60 vs. NU: 14.98 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Northeast Utilities's enterprise value for the quarter that ended in Mar. 2014 was $23,701 Mil. Northeast Utilities's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was $1,578 Mil. Northeast Utilities's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 was 6.66%.


Definition

Northeast Utilities's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=23705.210/1578.179
=15.02

Northeast Utilities's current Enterprise Value is $23,705 Mil.
Northeast Utilities's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 350.576 (Jun. 2013 ) + 399.262 (Sep. 2013 ) + 360.652 (Dec. 2013 ) + 467.689 (Mar. 2014 ) = $1,578 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).

Northeast Utilities's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2014 )
=1578.179/23700.672
=6.66 %

Northeast Utilities's Enterprise Value for the quarter that ended in Mar. 2014 was $23,701 Mil.
Northeast Utilities's Operating Income for the trailing twelve months (TTM) ended in Mar. 2014 was 350.576 (Jun. 2013 ) + 399.262 (Sep. 2013 ) + 360.652 (Dec. 2013 ) + 467.689 (Mar. 2014 ) = $1,578 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.

Northeast Utilities Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 19.300.0029.4216.8714.2912.6913.3414.5819.1314.85

Northeast Utilities Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebit 14.5815.6827.6721.5319.1317.2214.8814.8814.8515.02
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