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VMWare Inc (NYSE:VMW)
EV/EBIT
31.33 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, VMWare Inc's enterprise value is $31,459 Mil. VMWare Inc's operating income for the trailing twelve months (TTM) ended in Mar. 2015 was $1,004 Mil. Therefore, VMWare Inc's EV/EBIT ratio for today is 31.33.

VMW' s 10-Year EV/EBIT Range
Min: 17.7   Max: 267.4
Current: 31.33

17.7
267.4

During the past 11 years, the highest EV/EBIT Ratio of VMWare Inc was 267.40. The lowest was 17.70. And the median was 44.50.

VMW's EV/EBITis ranked higher than
73% of the 2995 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 44.26 vs. VMW: 31.33 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). VMWare Inc's enterprise value for the quarter that ended in Mar. 2015 was $29,347 Mil. VMWare Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was $1,004 Mil. VMWare Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 was 3.42%.


Definition

VMWare Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=31459.200/1004
=31.33

VMWare Inc's current Enterprise Value is $31,459 Mil.
VMWare Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 200 (Jun. 2014 ) + 242 (Sep. 2014 ) + 344 (Dec. 2014 ) + 218 (Mar. 2015 ) = $1,004 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).

VMWare Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2015 )=Operating Income (TTM)/Enterprise Value (Q: Mar. 2015 )
=1004/29347.1162
=3.42 %

VMWare Inc's Enterprise Value for the quarter that ended in Mar. 2015 was $29,347 Mil.
VMWare Inc's Operating Income for the trailing twelve months (TTM) ended in Mar. 2015 was 200 (Jun. 2014 ) + 242 (Sep. 2014 ) + 344 (Dec. 2014 ) + 218 (Mar. 2015 ) = $1,004 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.

VMWare Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 0.000.00134.9725.0868.4379.8542.4141.4830.1429.17

VMWare Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebit 41.4835.9627.4130.3930.1435.3533.1132.9929.1729.23
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