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GuruFocus has detected 2 Warning Signs with Parexel International Corp $PRXL.
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Parexel International Corp (NAS:PRXL)
EV-to-EBIT
14.98 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Parexel International Corp's enterprise value is $3,702 Mil. Parexel International Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $247 Mil. Therefore, Parexel International Corp's EV/EBIT ratio for today is 14.98.

PRXL' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.9   Max: 84.6
Current: 14.96

5.9
84.6

During the past 13 years, the highest EV/EBIT Ratio of Parexel International Corp was 84.60. The lowest was 5.90. And the median was 17.10.

PRXL's EV-to-EBIT is ranked higher than
72% of the 101 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 21.46 vs. PRXL: 14.96 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Parexel International Corp's enterprise value for the quarter that ended in Dec. 2016 was $3,870 Mil. Parexel International Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $247 Mil. Parexel International Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.39%.


Definition

Parexel International Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3702.294/247.2
=14.98

Parexel International Corp's current Enterprise Value is $3,702 Mil.
Parexel International Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 69.7 (Mar. 2016 ) + 64.2 (Jun. 2016 ) + 53.3 (Sep. 2016 ) + 60 (Dec. 2016 ) = $247 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).

Parexel International Corp'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 )
=247.2/3870.448
=6.39 %

Parexel International Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $3,870 Mil.
Parexel International Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 69.7 (Mar. 2016 ) + 64.2 (Jun. 2016 ) + 53.3 (Sep. 2016 ) + 60 (Dec. 2016 ) = $247 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.

Parexel International Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebit 15.4114.4412.2117.5020.4519.1620.2714.7918.5115.98

Parexel International Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 16.8314.2117.5818.5119.9121.5018.4315.9816.0015.66
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