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Xerox Corporation (NYSE:XRX)
EV/EBIT
13.90 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Xerox Corporation's enterprise value is $20,150 Mil. Xerox Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,450 Mil. Therefore, Xerox Corporation's EV/EBIT ratio for today is 13.90.

XRX' s 10-Year EV/EBIT Range
Min: 5.8   Max: 3349.1
Current: 13.9

5.8
3349.1

During the past 13 years, the highest EV/EBIT Ratio of Xerox Corporation was 3349.10. The lowest was 5.80. And the median was 14.80.

XRX's EV/EBITis ranked higher than
65% of the 1645 Companies
in the Global Business Equipment industry.

( Industry Median: 14.87 vs. XRX: 13.90 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Xerox Corporation's enterprise value for the quarter that ended in Dec. 2013 was $21,708 Mil. Xerox Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $1,450 Mil. Xerox Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 6.68%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=20149.926/1450
=13.90

Xerox Corporation's current Enterprise Value is $20,150 Mil.
Xerox Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 305 (Mar. 2013 ) + 391 (Jun. 2013 ) + 374 (Sep. 2013 ) + 380 (Dec. 2013 ) = $1,450 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).

Xerox 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 )
=1450/21707.6087
=6.68 %

Xerox Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $21,708 Mil.
Xerox Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 305 (Mar. 2013 ) + 391 (Jun. 2013 ) + 374 (Sep. 2013 ) + 380 (Dec. 2013 ) = $1,450 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.

Xerox Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 14.6941.7638.6819.2310.7019.1027.3413.7410.4214.97

Xerox Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 11.9513.7414.4713.9914.2310.4212.1112.5613.1014.97
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