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ShangPharma Corp (NYSE:SHP)
EV/EBIT
24.10 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, ShangPharma Corp's enterprise value is \$141.5 Mil. ShangPharma Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2012 was \$5.9 Mil. Therefore, ShangPharma Corp's EV/EBIT ratio for today is 24.10.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). ShangPharma Corp's enterprise value for the quarter that ended in Sep. 2012 was \$108.1 Mil. ShangPharma Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2012 was \$5.9 Mil. ShangPharma Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2012 was 5.43%.

Definition

ShangPharma Corp's EV/EBIT for today is calculated as:

 EV/EBIT = Enterprise Value (Today) / Earnings Before Interest and Taxes (EBIT) (TTM) = 141.506 / 5.872 = 24.10

ShangPharma Corp's current Enterprise Value is \$141.5 Mil.
ShangPharma Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2012 was 2.291 (Dec. 2011 ) + 1.614 (Mar. 2012 ) + 0.76 (Jun. 2012 ) + 1.207 (Sep. 2012 ) = \$5.9 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).

ShangPharma Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2012 is calculated as:

 Earnings Yield (Joel Greenblatt) (Q: Sep. 2012 ) = EBIT (TTM) / Enterprise Value (Q: Sep. 2012 ) = 5.872 / 108.09056 = 5.43 %

ShangPharma Corp's Enterprise Value for the quarter that ended in Sep. 2012 was \$108.1 Mil.
ShangPharma Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2012 was 2.291 (Dec. 2011 ) + 1.614 (Mar. 2012 ) + 0.76 (Jun. 2012 ) + 1.207 (Sep. 2012 ) = \$5.9 Mil.

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

Related Terms

Historical Data

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

ShangPharma Corp Annual Data

 Dec08 Dec09 Dec10 Dec11 ev2ebit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9.97 14.26

ShangPharma Corp Quarterly Data

 Dec09 Jun10 Sep10 Dec10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 ev2ebit 0.00 0.00 0.00 0.00 0.00 21.07 14.26 19.43 13.59 18.39
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