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Rackspace Hosting Inc (NYSE:RAX)
EV/EBIT
14.55 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Rackspace Hosting Inc's enterprise value is $4,031 Mil. Rackspace Hosting Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $277 Mil. Therefore, Rackspace Hosting Inc's EV/EBIT ratio for today is 14.55.

RAX' s EV/EBIT Range Over the Past 10 Years
Min: 10.6   Max: 72.8
Current: 14.55

10.6
72.8

During the past 12 years, the highest EV/EBIT Ratio of Rackspace Hosting Inc was 72.80. The lowest was 10.60. And the median was 39.50.

RAX's EV/EBIT is ranked higher than
58% of the 1231 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.27 vs. RAX: 14.55 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Rackspace Hosting Inc's enterprise value for the quarter that ended in Sep. 2016 was $3,999 Mil. Rackspace Hosting Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $277 Mil. Rackspace Hosting Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 6.93%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4030.720/277.1
=14.55

Rackspace Hosting Inc's current Enterprise Value is $4,031 Mil.
Rackspace Hosting Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 59.9 (Dec. 2015 ) + 82.3 (Mar. 2016 ) + 64.7 (Jun. 2016 ) + 70.2 (Sep. 2016 ) = $277 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).

Rackspace Hosting 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 )
=277.1/3999.4189
=6.93 %

Rackspace Hosting Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $3,999 Mil.
Rackspace Hosting Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 59.9 (Dec. 2015 ) + 82.3 (Mar. 2016 ) + 64.7 (Jun. 2016 ) + 70.2 (Sep. 2016 ) = $277 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.

Rackspace Hosting Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 0.000.0016.8844.7749.3046.2358.2839.7039.9617.32

Rackspace Hosting Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 35.2231.2439.9643.2529.1017.9817.3211.9910.4114.43
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