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Red Hat Inc (NYSE:RHT)
EV/EBIT
43.70 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Red Hat Inc's enterprise value is $10,238 Mil. Red Hat Inc's operating income for the trailing twelve months (TTM) ended in May. 2014 was $227 Mil. Therefore, Red Hat Inc's EV/EBIT ratio for today is 43.70.

RHT' s 10-Year EV/EBIT Range
Min: 16.5   Max: 2232.4
Current: 43.7

16.5
2232.4

During the past 13 years, the highest EV/EBIT Ratio of Red Hat Inc was 2232.40. The lowest was 16.50. And the median was 49.00.

RHT's EV/EBITis ranked higher than
67% of the 1826 Companies
in the Global Software - Application industry.

( Industry Median: 35.24 vs. RHT: 43.70 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Red Hat Inc's enterprise value for the quarter that ended in May. 2014 was $8,687 Mil. Red Hat Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was $227 Mil. Red Hat Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2014 was 2.61%.


Definition

Red Hat Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=10238.488/226.629
=45.18

Red Hat Inc's current Enterprise Value is $10,238 Mil.
Red Hat Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 55.574 (Aug. 2013 ) + 60.792 (Nov. 2013 ) + 59.3 (Feb. 2014 ) + 50.963 (May. 2014 ) = $227 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).

Red Hat Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: May. 2014 )=Operating Income (TTM)/Enterprise Value (Q: May. 2014 )
=226.629/8686.5338
=2.61 %

Red Hat Inc's Enterprise Value for the quarter that ended in May. 2014 was $8,687 Mil.
Red Hat Inc's Operating Income for the trailing twelve months (TTM) ended in May. 2014 was 55.574 (Aug. 2013 ) + 60.792 (Nov. 2013 ) + 59.3 (Feb. 2014 ) + 50.963 (May. 2014 ) = $227 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.

Red Hat Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ev2ebit 85.6127.4177.0542.3323.3244.7948.8043.7544.4143.95

Red Hat Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebit 43.7544.2549.0643.5144.4140.1340.9735.4443.9538.33
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