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GuruFocus has detected 3 Warning Signs with Weatherford International PLC $WFT.
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Weatherford International PLC (NYSE:WFT)
EV-to-EBIT
-5.84 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Weatherford International PLC's enterprise value is $13,141 Mil. Weatherford International PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-2,251 Mil. Therefore, Weatherford International PLC's EV/EBIT ratio for today is -5.84.

WFT' s EV-to-EBIT Range Over the Past 10 Years
Min: -286   Max: 109.5
Current: -5.84

-286
109.5

During the past 13 years, the highest EV/EBIT Ratio of Weatherford International PLC was 109.50. The lowest was -286.00. And the median was 18.20.

WFT's EV-to-EBIT is ranked lower than
99.99% of the 143 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 15.89 vs. WFT: -5.84 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Weatherford International PLC's enterprise value for the quarter that ended in Dec. 2016 was $11,078 Mil. Weatherford International PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $-2,251 Mil. Weatherford International PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was -20.32%.


Definition

Weatherford International PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=13140.560/-2251
=-5.84

Weatherford International PLC's current Enterprise Value is $13,141 Mil.
Weatherford International PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was -447 (Mar. 2016 ) + -460 (Jun. 2016 ) + -945 (Sep. 2016 ) + -399 (Dec. 2016 ) = $-2,251 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).

Weatherford International PLC'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 )
=-2251/11078.4272
=-20.32 %

Weatherford International PLC's Enterprise Value for the quarter that ended in Dec. 2016 was $11,078 Mil.
Weatherford International PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was -447 (Mar. 2016 ) + -460 (Jun. 2016 ) + -945 (Sep. 2016 ) + -399 (Dec. 2016 ) = $-2,251 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.

Weatherford International PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 16.586.7430.5039.3214.1262.4538.6231.66-8.77-4.92

Weatherford International PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 57.4831.6639.79-262.46-28.88-8.77-6.67-5.80-4.21-4.92
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