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GuruFocus has detected 4 Warning Signs with WisdomTree Investments Inc $WETF.
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WisdomTree Investments Inc (NAS:WETF)
EV-to-EBIT
13.05 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, WisdomTree Investments Inc's enterprise value is $1,079.5 Mil. WisdomTree Investments Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $82.7 Mil. Therefore, WisdomTree Investments Inc's EV/EBIT ratio for today is 13.05.

WETF' s EV-to-EBIT Range Over the Past 10 Years
Min: -953.4   Max: 716.5
Current: 23.44

-953.4
716.5

During the past 14 years, the highest EV/EBIT Ratio of WisdomTree Investments Inc was 716.50. The lowest was -953.40. And the median was 26.60.

WETF's EV-to-EBIT is ranked lower than
73% of the 1063 Companies
in the Global Asset Management industry.

( Industry Median: 13.77 vs. WETF: 23.44 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). WisdomTree Investments Inc's enterprise value for the quarter that ended in Sep. 2016 was $1,223.6 Mil. WisdomTree Investments Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $82.7 Mil. WisdomTree Investments Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 6.76%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=1079.469/82.747
=13.05

WisdomTree Investments Inc's current Enterprise Value is $1,079.5 Mil.
WisdomTree Investments Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 35.694 (Dec. 2015 ) + 21.672 (Mar. 2016 ) + 11.156 (Jun. 2016 ) + 14.225 (Sep. 2016 ) = $82.7 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).

WisdomTree Investments Inc'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 )
=82.747/1223.6388
=6.76 %

WisdomTree Investments Inc's Enterprise Value for the quarter that ended in Sep. 2016 was $1,223.6 Mil.
WisdomTree Investments Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 35.694 (Dec. 2015 ) + 21.672 (Mar. 2016 ) + 11.156 (Jun. 2016 ) + 14.225 (Sep. 2016 ) = $82.7 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.

WisdomTree Investments Inc Annual Data

Dec00Dec01Dec02Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 0.041.44-2.46-113.52217.4965.7742.7726.2014.1024.56

WisdomTree Investments Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 18.4126.2035.3128.3716.8714.109.9610.5114.7924.56
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