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GuruFocus has detected 3 Warning Signs with Westlake Chemical Corp $WLK.
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Westlake Chemical Corp (NYSE:WLK)
EV-to-EBIT
18.81 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Westlake Chemical Corp's enterprise value is $11,995 Mil. Westlake Chemical Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $638 Mil. Therefore, Westlake Chemical Corp's EV/EBIT ratio for today is 18.81.

WLK' s EV-to-EBIT Range Over the Past 10 Years
Min: -62.9   Max: 18.83
Current: 18.82

-62.9
18.83

During the past 13 years, the highest EV/EBIT Ratio of Westlake Chemical Corp was 18.83. The lowest was -62.90. And the median was 8.30.

WLK's EV-to-EBIT is ranked lower than
62% of the 736 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 14.91 vs. WLK: 18.82 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Westlake Chemical Corp's enterprise value for the quarter that ended in Dec. 2016 was $10,956 Mil. Westlake Chemical Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $638 Mil. Westlake Chemical Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 5.82%.


Definition

Westlake Chemical Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=11994.824/637.852
=18.81

Westlake Chemical Corp's current Enterprise Value is $11,995 Mil.
Westlake Chemical Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 204.921 (Mar. 2016 ) + 188.119 (Jun. 2016 ) + 87.828 (Sep. 2016 ) + 156.984 (Dec. 2016 ) = $638 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).

Westlake Chemical 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 )
=637.852/10955.585
=5.82 %

Westlake Chemical Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $10,956 Mil.
Westlake Chemical Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 204.921 (Mar. 2016 ) + 188.119 (Jun. 2016 ) + 87.828 (Sep. 2016 ) + 156.984 (Dec. 2016 ) = $638 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.

Westlake Chemical Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 9.76-61.9316.847.885.788.208.547.406.9617.27

Westlake Chemical Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 10.857.408.727.885.976.966.176.5416.0717.27
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