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Varian Medical Systems, Inc. (NYSE:VAR)
EV/EBIT
13.00 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Varian Medical Systems, Inc.'s enterprise value is $7,749 Mil. Varian Medical Systems, Inc.'s operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $613 Mil. Therefore, Varian Medical Systems, Inc.'s EV/EBIT ratio for today is 13.00.

VAR' s 10-Year EV/EBIT Range
Min: 7   Max: 28.4
Current: 13

7
28.4

During the past 13 years, the highest EV/EBIT Ratio of Varian Medical Systems, Inc. was 28.40. The lowest was 7.00. And the median was 14.20.

VAR's EV/EBITis ranked higher than
82% of the 247 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 18.32 vs. VAR: 13.00 )

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. 2013 was $7,617 Mil. Varian Medical Systems, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $613 Mil. Varian Medical Systems, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 8.05%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=7749.308/613.394
=12.63

Varian Medical Systems, Inc.'s current Enterprise Value is $7,749 Mil.
Varian Medical Systems, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 155.704 (Mar. 2013 ) + 154.732 (Jun. 2013 ) + 160.964 (Sep. 2013 ) + 141.994 (Dec. 2013 ) = $613 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).

Varian Medical Systems, Inc.'s Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=613.394/7616.833
=8.05 %

Varian Medical Systems, Inc.'s Enterprise Value for the quarter that ended in Dec. 2013 was $7,617 Mil.
Varian Medical Systems, Inc.'s Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 155.704 (Mar. 2013 ) + 154.732 (Jun. 2013 ) + 160.964 (Sep. 2013 ) + 141.994 (Dec. 2013 ) = $613 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.

Varian Medical Systems, Inc. Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev2ebit 18.2815.7521.4314.9716.2110.0412.479.3010.1112.10

Varian Medical Systems, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 9.3012.2612.6110.6210.1111.7411.8110.7512.1012.42
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