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GuruFocus has detected 4 Warning Signs with Varian Medical Systems Inc $VAR.
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Varian Medical Systems Inc (NYSE:VAR)
EV-to-EBIT
15.63 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Varian Medical Systems Inc's enterprise value is $7,671 Mil. Varian Medical Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $491 Mil. Therefore, Varian Medical Systems Inc's EV/EBIT ratio for today is 15.63.

VAR' s EV-to-EBIT Range Over the Past 10 Years
Min: 6   Max: 21.2
Current: 15.63

6
21.2

During the past 13 years, the highest EV/EBIT Ratio of Varian Medical Systems Inc was 21.20. The lowest was 6.00. And the median was 12.00.

VAR's EV-to-EBIT is ranked higher than
63% of the 137 Companies
in the Global Medical Devices industry.

( Industry Median: 21.56 vs. VAR: 15.63 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Varian Medical Systems Inc's enterprise value for the quarter that ended in Dec. 2016 was $7,225 Mil. Varian Medical Systems Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $491 Mil. Varian Medical Systems Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 6.79%.


Definition

Varian Medical Systems Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=7670.830/490.901
=15.63

Varian Medical Systems Inc's current Enterprise Value is $7,671 Mil.
Varian Medical Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 138.281 (Mar. 2016 ) + 135.006 (Jun. 2016 ) + 174.314 (Sep. 2016 ) + 43.3 (Dec. 2016 ) = $491 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).

Varian Medical Systems Inc'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 )
=490.901/7225.18
=6.79 %

Varian Medical Systems Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $7,225 Mil.
Varian Medical Systems Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 138.281 (Mar. 2016 ) + 135.006 (Jun. 2016 ) + 174.314 (Sep. 2016 ) + 43.3 (Dec. 2016 ) = $491 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.

Varian Medical Systems Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebit 12.7513.978.6810.898.128.7610.3411.4910.7914.06

Varian Medical Systems Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 11.4912.6813.4711.7410.7912.1712.2412.7814.0614.72
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