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IHS Markit Owner Earnings per Share (TTM)

: 3.81 (As of Nov. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

IHS Markit's Owner Earnings per Share (TTM) ended in Nov. 2021 was $3.81. It's Price-to-Owner-Earnings ratio for today is 29.61.


The historical rank and industry rank for IHS Markit's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:INFO' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 14.94   Med: 28.77   Max: 59.96
Current: 29.6

14.94
59.96

During the past 13 years, the highest Price-to-Owner-Earnings ratio of IHS Markit was 59.96. The lowest was 14.94. And the median was 28.77.


NYSE:INFO's Price-to-Owner-Earnings is ranked lower than
69% of the 599 Companies
in the Business Services industry.

( Industry Median: 16.87 vs. NYSE:INFO: 29.60 )

IHS Markit's Earnings per Share (Diluted) for the three months ended in Nov. 2021 was $1.83. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Nov. 2021 was $3.00. It's PE Ratio ratio for today is 37.60.

IHS Markit's EPS without NRI for the three months ended in Nov. 2021 was $1.83. Its EPS without NRI for the trailing twelve months (TTM) ended in Nov. 2021 was $3.00. It's PE Ratio without NRI ratio for today is 37.60.


IHS Markit Owner Earnings per Share (TTM) Historical Data

The historical data trend for IHS Markit's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

IHS Markit Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.38 2.24 2.36 2.70 3.81

IHS Markit Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.70 1.95 2.17 2.18 3.81

Competitive Comparison

For the Consulting Services subindustry, IHS Markit's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

IHS Markit Owner Earnings per Share (TTM) Distribution

For the Business Services industry and Industrials sector, IHS Markit's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where IHS Markit's Owner Earnings per Share (TTM) falls into.



IHS Markit Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

IHS Markit's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 1,207
Depreciation, Depletion and Amortization 587
Change In Deferred Tax -136
5Y Average of Maintenance Capital Expenditure 249
Change In Working Capital 124
Shares Outstanding (Diluted Average) 403

1. Start with "Net Income" from income statement. IHS Markit's Net Income for the trailing twelve months (TTM) ended in Nov. 2021 was $1,207 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. IHS Markit's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Nov. 2021 was $587 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. IHS Markit's Change In Deferred Tax for the trailing twelve months (TTM) ended in Nov. 2021 was $-136 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $249 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

IHS Markit's 5-Year Average Maintenance Capital Expenditure = $249 Mil

5. "Change In Working Capital" is from cashflow statement. IHS Markit's Change In Working Capital for the trailing twelve months (TTM) ended in Nov. 2021 was $124 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. IHS Markit's Shares Outstanding (Diluted Average) for the months ended in Nov. 2021 was 402.500 Mil.

IHS Markit's Onwer Earnings Per Share for Nov. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 1206.8 +586.5+-136.3
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-249.22428570648+124.3)/402.500
=3.81

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=112.80/3.81
=29.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


IHS Markit Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of IHS Markit's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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