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

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Northeast Utilities's enterprise value is $23,848 Mil. Northeast Utilities's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,529 Mil. Therefore, Northeast Utilities's EV/EBIT ratio for today is 15.40.

NU' s 10-Year EV/EBIT Range
Min: 8.8   Max: 54.9
Current: 15.4

8.8
54.9

During the past 13 years, the highest EV/EBIT Ratio of Northeast Utilities was 54.90. The lowest was 8.80. And the median was 14.50.

NU's EV/EBITis ranked higher than
66% of the 707 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 15.47 vs. NU: 15.40 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Northeast Utilities's enterprise value for the quarter that ended in Dec. 2013 was $22,716 Mil. Northeast Utilities's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,529 Mil. Northeast Utilities's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 6.73%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=23847.742/1529.435
=15.59

Northeast Utilities's current Enterprise Value is $23,848 Mil.
Northeast Utilities's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 418.945 (Mar. 2013 ) + 350.576 (Jun. 2013 ) + 399.262 (Sep. 2013 ) + 360.652 (Dec. 2013 ) = $1,529 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 Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=1529.435/22716.4801
=6.73 %

Northeast Utilities's Enterprise Value for the quarter that ended in Dec. 2013 was $22,716 Mil.
Northeast Utilities's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 418.945 (Mar. 2013 ) + 350.576 (Jun. 2013 ) + 399.262 (Sep. 2013 ) + 360.652 (Dec. 2013 ) = $1,529 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 13.6314.5815.6827.6721.5319.1317.2214.8814.8814.85
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