Switch to:
GuruFocus has detected 4 Warning Signs with Westinghouse Air Brake Technologies Corp $WAB.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Westinghouse Air Brake Technologies Corp (NYSE:WAB)
EV/EBIT
15.81 (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 $8,646 Mil. Westinghouse Air Brake Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $547 Mil. Therefore, Westinghouse Air Brake Technologies Corp's EV/EBIT ratio for today is 15.81.

WAB' s EV/EBIT Range Over the Past 10 Years
Min: 6.6   Max: 18.2
Current: 15.84

6.6
18.2

During the past 13 years, the highest EV/EBIT Ratio of Westinghouse Air Brake Technologies Corp was 18.20. The lowest was 6.60. And the median was 12.80.

WAB's EV/EBIT is ranked lower than
57% of the 643 Companies
in the Global Railroads industry.

( Industry Median: 14.67 vs. WAB: 15.84 )

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 Sep. 2016 was $7,846 Mil. Westinghouse Air Brake Technologies Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $547 Mil. Westinghouse Air Brake Technologies Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 6.97%.


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)
=8646.319/546.77
=15.81

Westinghouse Air Brake Technologies Corp's current Enterprise Value is $8,646 Mil.
Westinghouse Air Brake Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 151.209 (Dec. 2015 ) + 142.181 (Mar. 2016 ) + 133.284 (Jun. 2016 ) + 120.096 (Sep. 2016 ) = $547 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 Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=546.77/7845.5045
=6.97 %

Westinghouse Air Brake Technologies Corp's Enterprise Value for the quarter that ended in Sep. 2016 was $7,846 Mil.
Westinghouse Air Brake Technologies Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 151.209 (Dec. 2015 ) + 142.181 (Mar. 2016 ) + 133.284 (Jun. 2016 ) + 120.096 (Sep. 2016 ) = $547 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 11.088.8510.2311.9313.4412.8310.9216.6716.0511.53

Westinghouse Air Brake Technologies Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 17.3216.1816.0516.8916.0214.7311.5312.7611.7014.35
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK