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Westlake Chemical Corporation (NYSE:WLK)
EV/EBIT
9.30 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Westlake Chemical Corporation's enterprise value is $8,763 Mil. Westlake Chemical Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $953 Mil. Therefore, Westlake Chemical Corporation's EV/EBIT ratio for today is 9.30.

WLK' s 10-Year EV/EBIT Range
Min: 8.5   Max: 34.6
Current: 9.3

8.5
34.6

During the past 13 years, the highest EV/EBIT Ratio of Westlake Chemical Corporation was 34.60. The lowest was 8.50. And the median was 16.50.

WLK's EV/EBITis ranked higher than
84% of the 842 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 14.88 vs. WLK: 9.30 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Westlake Chemical Corporation's enterprise value for the quarter that ended in Dec. 2013 was $16,339 Mil. Westlake Chemical Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $953 Mil. Westlake Chemical Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 5.83%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=8763.194/953.464
=9.19

Westlake Chemical Corporation's current Enterprise Value is $8,763 Mil.
Westlake Chemical Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 194.055 (Mar. 2013 ) + 235.227 (Jun. 2013 ) + 266.602 (Sep. 2013 ) + 257.58 (Dec. 2013 ) = $953 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).

Westlake Chemical Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=953.464/16338.7831
=5.84 %

Westlake Chemical Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $16,339 Mil.
Westlake Chemical Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 194.055 (Mar. 2013 ) + 235.227 (Jun. 2013 ) + 266.602 (Sep. 2013 ) + 257.58 (Dec. 2013 ) = $953 Mil.

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


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

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

Westlake Chemical Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 21.2210.3013.7317.020.0033.1915.5811.8517.0017.14

Westlake Chemical Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 8.5711.8518.8213.6618.2717.0018.7017.8416.5817.14
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