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GuruFocus has detected 6 Warning Signs with Targa Resources Corp $TRGP.
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Targa Resources Corp (NYSE:TRGP)
EV-to-EBIT
304.63 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Targa Resources Corp's enterprise value is $16,968 Mil. Targa Resources Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $56 Mil. Therefore, Targa Resources Corp's EV/EBIT ratio for today is 304.63.

TRGP' s EV-to-EBIT Range Over the Past 10 Years
Min: -267.1   Max: 1242.4
Current: 304.63

-267.1
1242.4

During the past 9 years, the highest EV/EBIT Ratio of Targa Resources Corp was 1242.40. The lowest was -267.10. And the median was 20.00.

TRGP's EV-to-EBIT is ranked lower than
99.99% of the 111 Companies
in the Global Oil & Gas Midstream industry.

( Industry Median: 20.94 vs. TRGP: 304.63 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Targa Resources Corp's enterprise value for the quarter that ended in Dec. 2016 was $15,422 Mil. Targa Resources Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $56 Mil. Targa Resources Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 0.36%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=16967.983/55.7
=304.63

Targa Resources Corp's current Enterprise Value is $16,968 Mil.
Targa Resources Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 35.5 (Mar. 2016 ) + 66.3 (Jun. 2016 ) + 51.6 (Sep. 2016 ) + -97.7 (Dec. 2016 ) = $56 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).

Targa Resources Corp'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 )
=55.7/15422.4381
=0.36 %

Targa Resources Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $15,422 Mil.
Targa Resources Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 35.5 (Mar. 2016 ) + 66.3 (Jun. 2016 ) + 51.6 (Sep. 2016 ) + -97.7 (Dec. 2016 ) = $56 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.

Targa Resources Corp Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 0.000.000.0016.8112.3018.5923.3015.3576.12276.88

Targa Resources Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 17.6515.3526.3027.1226.0176.12182.931,231.59-263.01276.88
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