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GuruFocus has detected 1 Warning Sign with VIVUS Inc $VVUS.
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VIVUS Inc (NAS:VVUS)
EV-to-EBIT
1.40 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, VIVUS Inc's enterprise value is $78.5 Mil. VIVUS Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $56.3 Mil. Therefore, VIVUS Inc's EV/EBIT ratio for today is 1.40.

VVUS' s EV-to-EBIT Range Over the Past 10 Years
Min: -33.1   Max: 76.1
Current: 1.4

-33.1
76.1

During the past 13 years, the highest EV/EBIT Ratio of VIVUS Inc was 76.10. The lowest was -33.10. And the median was -6.35.

VVUS's EV-to-EBIT is ranked higher than
87% of the 423 Companies
in the Global Biotechnology industry.

( Industry Median: 22.87 vs. VVUS: 1.40 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). VIVUS Inc's enterprise value for the quarter that ended in Dec. 2016 was $92.4 Mil. VIVUS Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $56.3 Mil. VIVUS Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 60.89%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=78.499/56.26
=1.40

VIVUS Inc's current Enterprise Value is $78.5 Mil.
VIVUS Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was -4.531 (Mar. 2016 ) + -3.659 (Jun. 2016 ) + -0.848 (Sep. 2016 ) + 65.298 (Dec. 2016 ) = $56.3 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).

VIVUS 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 )
=56.26/92.3995
=60.89 %

VIVUS Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $92.4 Mil.
VIVUS Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was -4.531 (Mar. 2016 ) + -3.659 (Jun. 2016 ) + -0.848 (Sep. 2016 ) + 65.298 (Dec. 2016 ) = $56.3 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.

VIVUS Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 40.17-21.67-9.99-8.79-15.34-8.12-5.19-4.47-1.611.64

VIVUS Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit -7.43-4.47-4.02-2.77-2.09-1.61-2.64-6.66-5.861.64
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