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GuruFocus has detected 1 Warning Sign with Novo Nordisk A/S $NVO.
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Novo Nordisk A/S (NYSE:NVO)
EV-to-EBIT
11.48 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Novo Nordisk A/S's enterprise value is $82,686 Mil. Novo Nordisk A/S's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $7,202 Mil. Therefore, Novo Nordisk A/S's EV/EBIT ratio for today is 11.48.

NVO' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.2   Max: 25.7
Current: 11.73

9.2
25.7

During the past 13 years, the highest EV/EBIT Ratio of Novo Nordisk A/S was 25.70. The lowest was 9.20. And the median was 16.80.

NVO's EV-to-EBIT is ranked higher than
67% of the 320 Companies
in the Global Biotechnology industry.

( Industry Median: 21.73 vs. NVO: 11.73 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Novo Nordisk A/S's enterprise value for the quarter that ended in Dec. 2016 was $88,540 Mil. Novo Nordisk A/S's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $7,202 Mil. Novo Nordisk A/S's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 8.13%.


Definition

Novo Nordisk A/S's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=82686.330/7202.42868396
=11.48

Novo Nordisk A/S's current Enterprise Value is $82,686 Mil.
Novo Nordisk A/S's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1840.98169767 (Mar. 2016 ) + 1905.15027941 (Jun. 2016 ) + 1870.31179394 (Sep. 2016 ) + 1585.98491294 (Dec. 2016 ) = $7,202 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).

Novo Nordisk A/S'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 )
=7202.42868396/88540.4420056
=8.13 %

Novo Nordisk A/S's Enterprise Value for the quarter that ended in Dec. 2016 was $88,540 Mil.
Novo Nordisk A/S's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1840.98169767 (Mar. 2016 ) + 1905.15027941 (Jun. 2016 ) + 1870.31179394 (Sep. 2016 ) + 1585.98491294 (Dec. 2016 ) = $7,202 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.

Novo Nordisk A/S Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 18.6312.6412.4015.2113.5215.0315.9919.7623.4312.96

Novo Nordisk A/S Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 21.5919.7624.2621.7619.9323.4321.5021.2616.1312.96
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