Cochlear (FRA:OC50) EBIT: €264 Mil (TTM As of Dec. 2025)


FRA:OC50 Cochlear Ltd FRA:OC50
73 GF Score
Price €34.40
GF Value €91.14
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Cochlear EBIT?

Cochlear FRA:OC50 73 EBIT is €264 Mil as of Dec. 2025. GuruFocus rates FRA:OC50 with a GF Score™ of 73/100 and a GF Value™ of €91.14 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Cochlear's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was €124 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was €264 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cochlear's annualized ROC % for the quarter that ended in Dec. 2025 was 12.90%. Cochlear's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 38.80%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Cochlear's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 5.86%.


Cochlear  (FRA:OC50) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Cochlear's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=220.394 * ( 1 - 24.21% )/( (1270.527 + 1319.473)/ 2 )
=167.0366126/1295
=12.90 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1594.58 - 168.433 - ( 155.62 - max(0, 339.97 - 799.717+155.62))
=1270.527

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1585.262 - 159.621 - ( 106.168 - max(0, 317.143 - 779.041+106.168))
=1319.473

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Cochlear's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=248.994/( ( (302.66 + max(298.539, 0)) + (302.503 + max(379.676, 0)) )/ 2 )
=248.994/( ( 601.199 + 682.179 )/ 2 )
=248.994/641.689
=38.80 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(301.305 + 281.888 + 31.496) - (168.433 + 60.284 + 87.433)
=298.539

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(311.923 + 321.229 + 39.721) - (159.621 + 10.952 + 122.624)
=379.676

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Cochlear's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=264.199/4506.890
=5.86 %

* 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.


Cochlear EBIT Related Terms


Cochlear EBIT Historical Data

* Premium members only.

The historical data trend for Cochlear's EBIT 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.

Cochlear EBIT Chart

Cochlear Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 239.67 267.51 251.50 304.73 298.88

Cochlear Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial 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 162.22 141.69 170.56 139.70 124.50

FRA:OC50 vs ABT, SYK, MDT: EBIT Comparison

For the Medical Devices subindustry, Cochlear's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


Cochlear EV-to-EBIT vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Cochlear's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Cochlear's EV-to-EBIT falls into.


FRA:OC50
73GF Score
Cochlear Ltd FRA:OC50
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Cochlear EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was €264 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €264 Mil mean?
Cochlear (FRA:OC50) has a EBIT of €264 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Cochlear.
Is Cochlear's EBIT too high?
Cochlear's current EBIT is €264 Mil. Overall, Cochlear has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochlear's EBIT compare to ABT and SYK?
Cochlear's EBIT of €264 Mil can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Medical Devices & Instruments company?
A good EBIT depends on the Medical Devices & Instruments industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Cochlear. Cochlear's current EBIT is €264 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochlear stock overvalued right now?
Based on GuruFocus' analysis, Cochlear (FRA:OC50) is currently considered Significantly Undervalued. The stock's GF Value™ is €91.14, compared to a current price of €34.40 — trading 62.3% below its estimated fair value. The current EBIT is €264 Mil. Cochlear's overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Cochlear (FRA:OC50), the current EBIT is €264 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cochlear (FRA:OC50) Overvalued in 2026?

Based on GuruFocus' analysis, Cochlear stock appears to be undervalued. The current stock price of €34.40 is trading 62.3% below its estimated GF Value™ of €91.14. GuruFocus considers Cochlear to be Significantly Undervalued.

Key valuation signals for FRA:OC50:

  • EBIT: €264 Mil
  • GF Value™: €91.14 vs. price of €34.40 (62.3% below fair value)
  • GF Score™: 73/100 with 2 warning signs

No single metric tells the full story. See the FRA:OC50 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cochlear Business Description

Address 1 University Avenue, Macquarie University, Sydney, NSW, AUS, 2109
Cochlear is the leading cochlear implant device manufacturer, with around 60% global market share. Developed markets contribute 80% of group revenue, where cochlear implants are the standard of care for children with severe-to-profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2025, 49% of revenue came from the Americas, 34% from Europe, the Middle East, and Africa, and 18% from the Asia-Pacific segment.
73GF Score

Get the complete analysis for FRA:OC50

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€34.40
Price
€91.14
GF Value