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GuruFocus has detected 1 Warning Sign with Transocean Ltd $RIG.
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Transocean Ltd (NYSE:RIG)
EV-to-EBIT
7.66 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Transocean Ltd's enterprise value is $10,283 Mil. Transocean Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,343 Mil. Therefore, Transocean Ltd's EV/EBIT ratio for today is 7.66.

RIG' s EV-to-EBIT Range Over the Past 10 Years
Min: -75.2   Max: 173.4
Current: 7.66

-75.2
173.4

During the past 13 years, the highest EV/EBIT Ratio of Transocean Ltd was 173.40. The lowest was -75.20. And the median was 8.95.

RIG's EV-to-EBIT is ranked higher than
60% of the 47 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 15.02 vs. RIG: 7.66 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Transocean Ltd's enterprise value for the quarter that ended in Dec. 2016 was $11,153 Mil. Transocean Ltd's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,343 Mil. Transocean Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 12.04%.


Definition

Transocean Ltd's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=10283.366/1343
=7.66

Transocean Ltd's current Enterprise Value is $10,283 Mil.
Transocean Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 419 (Mar. 2016 ) + 199 (Jun. 2016 ) + 347 (Sep. 2016 ) + 378 (Dec. 2016 ) = $1,343 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).

Transocean Ltd's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=1343/11153.1346
=12.04 %

Transocean Ltd's Enterprise Value for the quarter that ended in Dec. 2016 was $11,153 Mil.
Transocean Ltd's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 419 (Mar. 2016 ) + 199 (Jun. 2016 ) + 347 (Sep. 2016 ) + 378 (Dec. 2016 ) = $1,343 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.

Transocean Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 17.285.058.4411.02-4.7514.5411.27-11.017.588.30

Transocean Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit -68.09-11.01-5.76-4.90153.647.584.465.875.778.30
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