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GuruFocus has detected 5 Warning Signs with Quanta Services Inc $PWR.
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Quanta Services Inc (NYSE:PWR)
EV-to-EBIT
27.46 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Quanta Services Inc's enterprise value is $5,715 Mil. Quanta Services Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $208 Mil. Therefore, Quanta Services Inc's EV/EBIT ratio for today is 27.46.

PWR' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.1   Max: 45.5
Current: 17.71

9.1
45.5

During the past 13 years, the highest EV/EBIT Ratio of Quanta Services Inc was 45.50. The lowest was 9.10. And the median was 15.85.

PWR's EV-to-EBIT is ranked lower than
80% of the 853 Companies
in the Global Engineering & Construction industry.

( Industry Median: 12.16 vs. PWR: 17.71 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Quanta Services Inc's enterprise value for the quarter that ended in Sep. 2016 was $4,419 Mil. Quanta Services Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $208 Mil. Quanta Services Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 4.71%.


Definition

Quanta Services Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=5715.179/208.119
=27.46

Quanta Services Inc's current Enterprise Value is $5,715 Mil.
Quanta Services Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 3.432 (Dec. 2015 ) + 37.891 (Mar. 2016 ) + 35.007 (Jun. 2016 ) + 131.789 (Sep. 2016 ) = $208 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).

Quanta Services Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=208.119/4418.6975
=4.71 %

Quanta Services Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $4,419 Mil.
Quanta Services Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 3.432 (Dec. 2015 ) + 37.891 (Mar. 2016 ) + 35.007 (Jun. 2016 ) + 131.789 (Sep. 2016 ) = $208 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.

Quanta Services Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 23.6911.9515.5515.4021.1611.5910.5613.3014.5917.52

Quanta Services Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 13.7513.3013.4415.3912.3914.5919.5622.8821.2317.52
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