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T. Rowe Price Group Inc (NAS:TROW)
EV/EBIT
9.40 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, T. Rowe Price Group Inc's enterprise value is $15,109 Mil. T. Rowe Price Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $1,608 Mil. Therefore, T. Rowe Price Group Inc's EV/EBIT ratio for today is 9.40.

TROW' s EV/EBIT Range Over the Past 10 Years
Min: 6.5   Max: 22.9
Current: 9.4

6.5
22.9

During the past 13 years, the highest EV/EBIT Ratio of T. Rowe Price Group Inc was 22.90. The lowest was 6.50. And the median was 12.40.

TROW's EV/EBIT is ranked higher than
64% of the 981 Companies
in the Global Asset Management industry.

( Industry Median: 13.85 vs. TROW: 9.40 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). T. Rowe Price Group Inc's enterprise value for the quarter that ended in Jun. 2016 was $17,002 Mil. T. Rowe Price Group Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $1,608 Mil. T. Rowe Price Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2016 was 9.46%.


Definition

T. Rowe Price Group Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=15109.340/1607.7
=9.40

T. Rowe Price Group Inc's current Enterprise Value is $15,109 Mil.
T. Rowe Price Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was 458.3 (Sep. 2015 ) + 455 (Dec. 2015 ) + 410.9 (Mar. 2016 ) + 283.5 (Jun. 2016 ) = $1,608 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).

T. Rowe Price Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2016 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2016 )
=1607.7/17001.5959
=9.46 %

T. Rowe Price Group Inc's Enterprise Value for the quarter that ended in Jun. 2016 was $17,002 Mil.
T. Rowe Price Group Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was 458.3 (Sep. 2015 ) + 455 (Dec. 2015 ) + 410.9 (Mar. 2016 ) + 283.5 (Jun. 2016 ) = $1,608 Mil.

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

T. Rowe Price Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 13.7615.3810.0618.5615.3311.0211.6212.5511.068.81

T. Rowe Price Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ev2ebit 11.6111.4610.1511.0610.059.748.498.819.2310.58
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