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GuruFocus has detected 1 Warning Sign with Valeant Pharmaceuticals International Inc $VRX.
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Valeant Pharmaceuticals International Inc (NYSE:VRX)
EV-to-EBIT
-59.34 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Valeant Pharmaceuticals International Inc's enterprise value is $35,547 Mil. Valeant Pharmaceuticals International Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-599 Mil. Therefore, Valeant Pharmaceuticals International Inc's EV/EBIT ratio for today is -59.34.

During the past 13 years, the highest EV/EBIT Ratio of Valeant Pharmaceuticals International Inc was 379.50. The lowest was -1211.60. And the median was 12.10.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Valeant Pharmaceuticals International Inc's enterprise value for the quarter that ended in Dec. 2016 was $34,464 Mil. Valeant Pharmaceuticals International Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-599 Mil. Valeant Pharmaceuticals International Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was -1.74%.


Definition

Valeant Pharmaceuticals International Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=35547.360/-599
=-59.34

Valeant Pharmaceuticals International Inc's current Enterprise Value is $35,547 Mil.
Valeant Pharmaceuticals International Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 60.9 (Mar. 2016 ) + 95.7 (Jun. 2016 ) + -862.8 (Sep. 2016 ) + 107.2 (Dec. 2016 ) = $-599 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).

Valeant Pharmaceuticals International 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 )
=-599/34464.1684
=-1.74 %

Valeant Pharmaceuticals International Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $34,464 Mil.
Valeant Pharmaceuticals International Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 60.9 (Mar. 2016 ) + 95.7 (Jun. 2016 ) + -862.8 (Sep. 2016 ) + 107.2 (Dec. 2016 ) = $-599 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.

Valeant Pharmaceuticals International Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 7.0510.9311.54-76.6467.94312.29-123.3832.2049.76-58.68

Valeant Pharmaceuticals International Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 42.1832.2044.1350.2148.7449.7640.7249.03-71.63-58.68
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