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

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, T. Rowe Price Group Inc's enterprise value is $20,144 Mil. T. Rowe Price Group Inc's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $1,851 Mil. Therefore, T. Rowe Price Group Inc's EV/EBIT ratio for today is 10.88.

TROW' s 10-Year EV/EBIT Range
Min: 6.3   Max: 22.9
Current: 10.84

6.3
22.9

During the past 13 years, the highest EV/EBIT Ratio of T. Rowe Price Group Inc was 22.90. The lowest was 6.30. And the median was 13.50.

TROW's EV/EBITis ranked higher than
81% of the 1817 Companies
in the Global Asset Management industry.

( Industry Median: 23.05 vs. TROW: 10.84 )

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 Sep. 2014 was $18,791 Mil. T. Rowe Price Group Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $1,851 Mil. T. Rowe Price Group Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 9.85%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=20144.300/1851
=10.88

T. Rowe Price Group Inc's current Enterprise Value is $20,144 Mil.
T. Rowe Price Group Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 440.1 (Dec. 2013 ) + 449.1 (Mar. 2014 ) + 473.1 (Jun. 2014 ) + 488.7 (Sep. 2014 ) = $1,851 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 Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=1851/18791.244
=9.85 %

T. Rowe Price Group Inc's Enterprise Value for the quarter that ended in Sep. 2014 was $18,791 Mil.
T. Rowe Price Group Inc's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 440.1 (Dec. 2013 ) + 449.1 (Mar. 2014 ) + 473.1 (Jun. 2014 ) + 488.7 (Sep. 2014 ) = $1,851 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.

T. Rowe Price Group Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 14.2213.1513.6815.3510.0618.5615.3311.0211.6212.55

T. Rowe Price Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 11.3911.4911.6211.9210.9910.9512.5511.6111.4610.15
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