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Rackspace Hosting, Inc. (NYSE:RAX)
EV/EBIT
33.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Rackspace Hosting, Inc.'s enterprise value is $4,332 Mil. Rackspace Hosting, Inc.'s operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $133 Mil. Therefore, Rackspace Hosting, Inc.'s EV/EBIT ratio for today is 33.30.

RAX' s 10-Year EV/EBIT Range
Min: 15.5   Max: 72.5
Current: 33.3

15.5
72.5

During the past 10 years, the highest EV/EBIT Ratio of Rackspace Hosting, Inc. was 72.50. The lowest was 15.50. And the median was 44.30.

RAX's EV/EBITis ranked lower than
60% of the 1278 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.39 vs. RAX: 33.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Rackspace Hosting, Inc.'s enterprise value for the quarter that ended in Dec. 2013 was $5,238 Mil. Rackspace Hosting, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $133 Mil. Rackspace Hosting, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 2.54%.


Definition

Rackspace Hosting, Inc.'s EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=4332.483/133.136
=32.54

Rackspace Hosting, Inc.'s current Enterprise Value is $4,332 Mil.
Rackspace Hosting, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 42.813 (Mar. 2013 ) + 35.404 (Jun. 2013 ) + 27.762 (Sep. 2013 ) + 27.157 (Dec. 2013 ) = $133 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).

Rackspace Hosting, Inc.'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 )
=133.136/5238.0653
=2.54 %

Rackspace Hosting, Inc.'s Enterprise Value for the quarter that ended in Dec. 2013 was $5,238 Mil.
Rackspace Hosting, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 42.813 (Mar. 2013 ) + 35.404 (Jun. 2013 ) + 27.762 (Sep. 2013 ) + 27.157 (Dec. 2013 ) = $133 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.

Rackspace Hosting, Inc. Annual Data

Dec03Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.000.000.0016.2344.1448.4245.2557.9339.34

Rackspace Hosting, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 41.3245.2556.3139.1554.4757.9337.7829.0845.5639.34
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