Espressif Systems (Shanghai) Co (SHSE:688018) EBIT: ¥554 Mil (TTM As of Mar. 2026)


SHSE:688018 Espressif Systems (Shanghai) Co Ltd SHSE:688018
96 GF Score
Price ¥118.00
GF Value ¥108.70
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Espressif Systems (Shanghai) Co EBIT?

Espressif Systems (Shanghai) Co SHSE:688018 -5.01% 96 EBIT is ¥554 Mil as of Mar. 2026. GuruFocus rates SHSE:688018 with a GF Score™ of 96/100 and a GF Value™ of ¥108.70 (Fairly Valued). The stock has 4 warning signs investors should review.

Espressif Systems (Shanghai) Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was ¥135 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was ¥554 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Espressif Systems (Shanghai) Co's annualized ROC % for the quarter that ended in Mar. 2026 was 17.14%. Espressif Systems (Shanghai) Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 24.19%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Espressif Systems (Shanghai) Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2.13%.


Espressif Systems (Shanghai) Co  (SHSE:688018) EBIT Explanation

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

Espressif Systems (Shanghai) Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=490.104 * ( 1 - 0% )/( (2761.921 + 2957.231)/ 2 )
=490.104/2859.576
=17.14 %

where

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))
=5047.756 - 385.033 - ( 1900.802 - max(0, 416.532 - 3934.885+1900.802))
=2761.921

Invested Capital(Q: Mar. 2026 )
=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))
=5041.544 - 319.28 - ( 1765.033 - max(0, 362.996 - 3905.301+1765.033))
=2957.231

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

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

Espressif Systems (Shanghai) Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=539.176/( ( (585.905 + max(1547.522, 0)) + (602.915 + max(1721.148, 0)) )/ 2 )
=539.176/( ( 2133.427 + 2324.063 )/ 2 )
=539.176/2228.745
=24.19 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(298.106 + 627.638 + 1031.365) - (385.033 + 0 + 24.554)
=1547.522

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(328.89 + 740.195 + 1007.279) - (319.28 + 0 + 35.936)
=1721.148

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

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

Espressif Systems (Shanghai) Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=553.914/25959.725
=2.13 %

* 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.


Espressif Systems (Shanghai) Co EBIT Related Terms


Espressif Systems (Shanghai) Co EBIT Historical Data

* Premium members only.

The historical data trend for Espressif Systems (Shanghai) Co'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.

Espressif Systems (Shanghai) Co EBIT Chart

Espressif Systems (Shanghai) Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 208.94 86.86 106.31 333.94 512.69

Espressif Systems (Shanghai) Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 93.57 170.32 130.46 118.34 134.79

SHSE:688018 vs NVDA, AVGO, MU: EBIT Comparison

For the Semiconductors subindustry, Espressif Systems (Shanghai) Co'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.


Espressif Systems (Shanghai) Co EV-to-EBIT vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Espressif Systems (Shanghai) Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Espressif Systems (Shanghai) Co's EV-to-EBIT falls into.


SHSE:688018
96GF Score
Espressif Systems (Shanghai) Co Ltd SHSE:688018
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Espressif Systems (Shanghai) Co 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 Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥554 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 ¥554 Mil mean?
Espressif Systems (Shanghai) Co (SHSE:688018) has a EBIT of ¥554 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Espressif Systems (Shanghai) Co.
Is Espressif Systems (Shanghai) Co's EBIT too high?
Espressif Systems (Shanghai) Co's current EBIT is ¥554 Mil. Overall, Espressif Systems (Shanghai) Co has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Espressif Systems (Shanghai) Co's EBIT compare to NVDA and AVGO?
Espressif Systems (Shanghai) Co's EBIT of ¥554 Mil can be compared against companies in the Semiconductors 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 Semiconductors company?
A good EBIT depends on the Semiconductors 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 Espressif Systems (Shanghai) Co. Espressif Systems (Shanghai) Co's current EBIT is ¥554 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Espressif Systems (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Espressif Systems (Shanghai) Co (SHSE:688018) is currently considered Fairly Valued. The stock's GF Value™ is ¥108.70, compared to a current price of ¥118.00 — trading 8.6% above its estimated fair value. The current EBIT is ¥554 Mil. Espressif Systems (Shanghai) Co's overall GF Score™ is 96/100 with 4 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 Espressif Systems (Shanghai) Co (SHSE:688018), the current EBIT is ¥554 Mil as of Mar. 2026. 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 Espressif Systems (Shanghai) Co (SHSE:688018) Overvalued in 2026?

Based on GuruFocus' analysis, Espressif Systems (Shanghai) Co stock appears to be overvalued. The current stock price of ¥118.00 is trading 8.6% above its estimated GF Value™ of ¥108.70. GuruFocus considers Espressif Systems (Shanghai) Co to be Fairly Valued.

Key valuation signals for SHSE:688018:

  • EBIT: ¥554 Mil
  • GF Value™: ¥108.70 vs. price of ¥118.00 (8.6% above fair value)
  • GF Score™: 96/100 with 4 warning signs

No single metric tells the full story. See the SHSE:688018 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Espressif Systems (Shanghai) Co Business Description

Address No. 690, Bibo Road, Room 204, Building 2, China (Shanghai) Pilot Free Trade Zone, Shanghai, CHN, 201203
Espressif Systems (Shanghai) Co Ltd is primarily engaged in development, design and sales of Wi-Fi MCU communication chips and their modules from the internet of things.
96GF Score

Get the complete analysis for SHSE:688018

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

¥118.00
Price
¥108.70
GF Value