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Occidental Petroleum Corporation (NYSE:OXY)
EV/EBIT
8.54 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Occidental Petroleum Corporation's enterprise value is $80,319 Mil. Occidental Petroleum Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $9,400 Mil. Therefore, Occidental Petroleum Corporation's EV/EBIT ratio for today is 8.54.

OXY' s 10-Year EV/EBIT Range
Min: 2.5   Max: 18
Current: 8.54

2.5
18

During the past 13 years, the highest EV/EBIT Ratio of Occidental Petroleum Corporation was 18.00. The lowest was 2.50. And the median was 6.95.

OXY's EV/EBITis ranked higher than
86% of the 181 Companies
in the Global Oil & Gas Integrated industry.

( Industry Median: 8.85 vs. OXY: 8.54 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Occidental Petroleum Corporation's enterprise value for the quarter that ended in Dec. 2013 was $80,448 Mil. Occidental Petroleum Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $9,400 Mil. Occidental Petroleum Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 11.68%.


Definition

Occidental Petroleum Corporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=80318.652/9400
=8.54

Occidental Petroleum Corporation's current Enterprise Value is $80,319 Mil.
Occidental Petroleum Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 2141 (Mar. 2013 ) + 2172 (Jun. 2013 ) + 2548 (Sep. 2013 ) + 2539 (Dec. 2013 ) = $9,400 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).

Occidental Petroleum Corporation'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 )
=9400/80448.306
=11.68 %

Occidental Petroleum Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $80,448 Mil.
Occidental Petroleum Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 2141 (Mar. 2013 ) + 2172 (Jun. 2013 ) + 2548 (Sep. 2013 ) + 2539 (Dec. 2013 ) = $9,400 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.

Occidental Petroleum Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 6.164.785.387.374.2213.2211.167.649.018.56

Occidental Petroleum Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 6.137.647.497.357.899.019.7610.8210.678.56
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