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GuruFocus has detected 6 Warning Signs with Westinghouse Air Brake Technologies Corp $WAB.
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Westinghouse Air Brake Technologies Corp (NYSE:WAB)
EV-to-EBIT
21.26 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Westinghouse Air Brake Technologies Corp's enterprise value is $9,745 Mil. Westinghouse Air Brake Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $458 Mil. Therefore, Westinghouse Air Brake Technologies Corp's EV/EBIT ratio for today is 21.26.

WAB' s EV-to-EBIT Range Over the Past 10 Years
Min: 6.6   Max: 22.4
Current: 22.61

6.6
22.4

During the past 13 years, the highest EV/EBIT Ratio of Westinghouse Air Brake Technologies Corp was 22.40. The lowest was 6.60. And the median was 12.80.

WAB's EV-to-EBIT is ranked lower than
73% of the 871 Companies
in the Global Railroads industry.

( Industry Median: 14.84 vs. WAB: 22.61 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Westinghouse Air Brake Technologies Corp's enterprise value for the quarter that ended in Dec. 2016 was $10,183 Mil. Westinghouse Air Brake Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $458 Mil. Westinghouse Air Brake Technologies Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 4.50%.


Definition

Westinghouse Air Brake Technologies Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=9745.046/458.361
=21.26

Westinghouse Air Brake Technologies Corp's current Enterprise Value is $9,745 Mil.
Westinghouse Air Brake Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 142.181 (Mar. 2016 ) + 133.284 (Jun. 2016 ) + 120.096 (Sep. 2016 ) + 62.8 (Dec. 2016 ) = $458 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).

Westinghouse Air Brake Technologies Corp'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 )
=458.361/10182.7574
=4.50 %

Westinghouse Air Brake Technologies Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $10,183 Mil.
Westinghouse Air Brake Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 142.181 (Mar. 2016 ) + 133.284 (Jun. 2016 ) + 120.096 (Sep. 2016 ) + 62.8 (Dec. 2016 ) = $458 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.

Westinghouse Air Brake Technologies Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 8.8510.2311.9613.4912.8110.9216.6816.0511.5322.22

Westinghouse Air Brake Technologies Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 16.0516.8916.0214.7311.5312.7611.7014.3522.220.00
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