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GuruFocus has detected 3 Warning Signs with Xerox Corp $XRX.
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Xerox Corp (NYSE:XRX)
EV/EBIT
14.82 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Xerox Corp's enterprise value is $13,381 Mil. Xerox Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $903 Mil. Therefore, Xerox Corp's EV/EBIT ratio for today is 14.82.

XRX' s EV/EBIT Range Over the Past 10 Years
Min: 7.5   Max: 67.2
Current: 14.7

7.5
67.2

During the past 13 years, the highest EV/EBIT Ratio of Xerox Corp was 67.20. The lowest was 7.50. And the median was 12.10.

XRX's EV/EBIT is ranked higher than
58% of the 1186 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.67 vs. XRX: 14.70 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Xerox Corp's enterprise value for the quarter that ended in Sep. 2016 was $13,107 Mil. Xerox Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was $903 Mil. Xerox Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 was 6.89%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=13380.609/903
=14.82

Xerox Corp's current Enterprise Value is $13,381 Mil.
Xerox Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 366 (Dec. 2015 ) + 39 (Mar. 2016 ) + 299 (Jun. 2016 ) + 199 (Sep. 2016 ) = $903 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).

Xerox Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2016 )=EBIT (TTM)/Enterprise Value (Q: Sep. 2016 )
=903/13106.9126
=6.89 %

Xerox Corp's Enterprise Value for the quarter that ended in Sep. 2016 was $13,107 Mil.
Xerox Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2016 was 366 (Dec. 2015 ) + 39 (Mar. 2016 ) + 299 (Jun. 2016 ) + 199 (Sep. 2016 ) = $903 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.

Xerox Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebit 11.968.3263.9310.3817.118.328.2311.0911.7516.77

Xerox Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebit 11.4412.1911.7511.7910.3815.7616.7723.9422.0214.51
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