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GuruFocus has detected 5 Warning Signs with Telefonica SA $TEF.
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Telefonica SA (NYSE:TEF)
EV-to-EBIT
5.95 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Telefonica SA's enterprise value is $62,118 Mil. Telefonica SA's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $10,441 Mil. Therefore, Telefonica SA's EV/EBIT ratio for today is 5.95.

TEF' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.6   Max: 23
Current: 6.1

4.6
23

During the past 13 years, the highest EV/EBIT Ratio of Telefonica SA was 23.00. The lowest was 4.60. And the median was 11.30.

TEF's EV-to-EBIT is ranked higher than
93% of the 373 Companies
in the Global Telecom Services industry.

( Industry Median: 15.51 vs. TEF: 6.10 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Telefonica SA's enterprise value for the quarter that ended in Dec. 2016 was $51,253 Mil. Telefonica SA's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $10,441 Mil. Telefonica SA's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 20.37%.


Definition

Telefonica SA's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=62117.887/10440.924966
=5.95

Telefonica SA's current Enterprise Value is $62,118 Mil.
Telefonica SA's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1492.20489978 (Mar. 2016 ) + 3939.3258427 (Jun. 2016 ) + 1928.17059484 (Sep. 2016 ) + 3081.22362869 (Dec. 2016 ) = $10,441 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).

Telefonica SA'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 )
=10440.924966/51252.8232911
=20.37 %

Telefonica SA's Enterprise Value for the quarter that ended in Dec. 2016 was $51,253 Mil.
Telefonica SA's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 1492.20489978 (Mar. 2016 ) + 3939.3258427 (Jun. 2016 ) + 1928.17059484 (Sep. 2016 ) + 3081.22362869 (Dec. 2016 ) = $10,441 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.

Telefonica SA Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 10.886.889.828.2912.4310.9211.6016.0910.925.17

Telefonica SA Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 14.0016.0917.5118.0016.4510.9222.7516.4516.685.17
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