Switch to:
RCM Technologies Inc (NAS:RCMT)
EV/EBIT
17.89 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, RCM Technologies Inc's enterprise value is $96.9 Mil. RCM Technologies Inc's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $5.4 Mil. Therefore, RCM Technologies Inc's EV/EBIT ratio for today is 17.89.

RCMT' s 10-Year EV/EBIT Range
Min: -0.6   Max: 251.8
Current: 17.72

-0.6
251.8

During the past 13 years, the highest EV/EBIT Ratio of RCM Technologies Inc was 251.80. The lowest was -0.60. And the median was 9.35.

RCMT's EV/EBITis ranked higher than
55% of the 185 Companies
in the Global Staffing & Outsourcing Services industry.

( Industry Median: 12.97 vs. RCMT: 17.72 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). RCM Technologies Inc's enterprise value for the quarter that ended in Sep. 2014 was $86.6 Mil. RCM Technologies Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $5.4 Mil. RCM Technologies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 6.25%.


Definition

RCM Technologies Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=96.895/5.417
=17.89

RCM Technologies Inc's current Enterprise Value is $96.9 Mil.
RCM Technologies Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was -2.479 (Dec. 2013 ) + 2.038 (Mar. 2014 ) + 3.025 (Jun. 2014 ) + 2.833 (Sep. 2014 ) = $5.4 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).

RCM Technologies Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=5.417/86.6228
=6.25 %

RCM Technologies Inc's Enterprise Value for the quarter that ended in Sep. 2014 was $86.6 Mil.
RCM Technologies Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was -2.479 (Dec. 2013 ) + 2.038 (Mar. 2014 ) + 3.025 (Jun. 2014 ) + 2.833 (Sep. 2014 ) = $5.4 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.

RCM Technologies Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 18.289.837.305.86-0.418.214.035.369.4130.28

RCM Technologies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 6.585.989.4112.239.499.5130.2825.4815.4815.99
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK