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Shire PLC (NAS:SHPG)
EV/EBIT
15.60 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Shire PLC's enterprise value is $27,119 Mil. Shire PLC's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,734 Mil. Therefore, Shire PLC's EV/EBIT ratio for today is 15.60.

SHPG' s 10-Year EV/EBIT Range
Min: 6.4   Max: 59.1
Current: 15.6

6.4
59.1

During the past 13 years, the highest EV/EBIT Ratio of Shire PLC was 59.10. The lowest was 6.40. And the median was 17.35.

SHPG's EV/EBITis ranked higher than
69% of the 468 Companies
in the Global Biotechnology industry.

( Industry Median: 20.00 vs. SHPG: 15.60 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Shire PLC's enterprise value for the quarter that ended in Dec. 2013 was $24,274 Mil. Shire PLC's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,734 Mil. Shire PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 7.14%.


Definition

Shire PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=27119.115/1733.5
=15.64

Shire PLC's current Enterprise Value is $27,119 Mil.
Shire PLC's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 129.1 (Mar. 2013 ) + 341.8 (Jun. 2013 ) + 340.8 (Sep. 2013 ) + 921.8 (Dec. 2013 ) = $1,734 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).

Shire PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=1733.5/24273.6685
=7.14 %

Shire PLC's Enterprise Value for the quarter that ended in Dec. 2013 was $24,274 Mil.
Shire PLC's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 129.1 (Mar. 2013 ) + 341.8 (Jun. 2013 ) + 340.8 (Sep. 2013 ) + 921.8 (Dec. 2013 ) = $1,734 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.

Shire PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 8.690.0032.610.0022.5418.7617.7817.5716.1714.00

Shire PLC Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 18.4117.5715.4513.6813.5016.1719.0918.8822.2114.00
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