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Wells Fargo & Co (NYSE:WFC)
EV/EBIT
13.70 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Wells Fargo & Co's enterprise value is $460,532 Mil. Wells Fargo & Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $33,620 Mil. Therefore, Wells Fargo & Co's EV/EBIT ratio for today is 13.70.

WFC' s 10-Year EV/EBIT Range
Min: 7.1   Max: 149.7
Current: 13.62

7.1
149.7

During the past 13 years, the highest EV/EBIT Ratio of Wells Fargo & Co was 149.70. The lowest was 7.10. And the median was 16.90.

WFC's EV/EBITis ranked lower than
51% of the 1284 Companies
in the Global Banks - Global industry.

( Industry Median: 13.41 vs. WFC: 13.62 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Wells Fargo & Co's enterprise value for the quarter that ended in Jun. 2015 was $475,283 Mil. Wells Fargo & Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was $33,620 Mil. Wells Fargo & Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 was 7.07%.


Definition

Wells Fargo & Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=460532.055/33620
=13.70

Wells Fargo & Co's current Enterprise Value is $460,532 Mil.
Wells Fargo & Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 8597 (Sep. 2014 ) + 8311 (Dec. 2014 ) + 8163 (Mar. 2015 ) + 8549 (Jun. 2015 ) = $33,620 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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).

Wells Fargo & Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2015 )=EBIT (TTM)/Enterprise Value (Q: Jun. 2015 )
=33620/475283.008
=7.07 %

Wells Fargo & Co's Enterprise Value for the quarter that ended in Jun. 2015 was $475,283 Mil.
Wells Fargo & Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2015 was 8597 (Sep. 2014 ) + 8311 (Dec. 2014 ) + 8163 (Mar. 2015 ) + 8549 (Jun. 2015 ) = $33,620 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Wells Fargo & Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebit 16.7916.3020.46146.6920.3719.4513.2312.5413.1914.03

Wells Fargo & Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebit 12.9712.8613.3213.1913.5914.157.4414.0314.1814.14
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