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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Red Hat Inc's enterprise value is $12,386 Mil. Red Hat Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2015 was $298 Mil. Therefore, Red Hat Inc's EV/EBIT ratio for today is 41.56.

RHT' s EV/EBIT Range Over the Past 10 Years
Min: 9.7   Max: 84.7
Current: 37.32

9.7
84.7

During the past 13 years, the highest EV/EBIT Ratio of Red Hat Inc was 84.70. The lowest was 9.70. And the median was 45.85.

RHT's EV/EBIT is ranked lower than
75% of the 1152 Companies
in the Global Software - Application industry.

( Industry Median: 16.49 vs. RHT: 37.32 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Red Hat Inc's enterprise value for the quarter that ended in Nov. 2015 was $14,460 Mil. Red Hat Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2015 was $298 Mil. Red Hat Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2015 was 2.06%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=12386.147/298.042
=41.56

Red Hat Inc's current Enterprise Value is $12,386 Mil.
Red Hat Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2015 was 74.68 (Feb. 2015 ) + 73.442 (May. 2015 ) + 78.12 (Aug. 2015 ) + 71.8 (Nov. 2015 ) = $298 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 Nov. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Nov. 2015 )=EBIT (TTM)/Enterprise Value (Q: Nov. 2015 )
=298.042/14460.3492
=2.06 %

Red Hat Inc's Enterprise Value for the quarter that ended in Nov. 2015 was $14,460 Mil.
Red Hat Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2015 was 74.68 (Feb. 2015 ) + 73.442 (May. 2015 ) + 78.12 (Aug. 2015 ) + 71.8 (Nov. 2015 ) = $298 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Red Hat Inc Annual Data

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
ev2ebit 53.1842.1522.8115.2344.7948.8043.7544.4143.2945.83

Red Hat Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
ev2ebit 40.9735.2643.2937.2043.8043.6445.8348.1042.9148.52
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