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GuruFocus has detected 5 Warning Signs with Pentair PLC $PNR.
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Pentair PLC (NYSE:PNR)
EV-to-EBIT
20.46 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Pentair PLC's enterprise value is $15,156 Mil. Pentair PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $741 Mil. Therefore, Pentair PLC's EV/EBIT ratio for today is 20.46.

PNR' s EV-to-EBIT Range Over the Past 10 Years
Min: -166   Max: 845.3
Current: 20.46

-166
845.3

During the past 13 years, the highest EV/EBIT Ratio of Pentair PLC was 845.30. The lowest was -166.00. And the median was 15.60.

PNR's EV-to-EBIT is ranked lower than
66% of the 1889 Companies
in the Global Diversified Industrials industry.

( Industry Median: 15.47 vs. PNR: 20.46 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Pentair PLC's enterprise value for the quarter that ended in Dec. 2016 was $14,231 Mil. Pentair PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $741 Mil. Pentair PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 5.21%.


Definition

Pentair PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=15155.567/740.8
=20.46

Pentair PLC's current Enterprise Value is $15,156 Mil.
Pentair PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 170.6 (Mar. 2016 ) + 216.9 (Jun. 2016 ) + 182.8 (Sep. 2016 ) + 170.5 (Dec. 2016 ) = $741 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).

Pentair PLC'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 )
=740.8/14230.8618
=5.21 %

Pentair PLC's Enterprise Value for the quarter that ended in Dec. 2016 was $14,231 Mil.
Pentair PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 170.6 (Mar. 2016 ) + 216.9 (Jun. 2016 ) + 182.8 (Sep. 2016 ) + 170.5 (Dec. 2016 ) = $741 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.

Pentair PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 11.797.8518.9713.8044.88-162.8822.2227.7118.8319.21

Pentair PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 15.9227.7127.4729.6734.4218.8320.2320.8821.3619.21
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