Essity AB (STU:ESWB) EBIT: €1,696 Mil (TTM As of Mar. 2026)


STU:ESWB Essity AB STU:ESWB
84 GF Score
Price €24.40
GF Value €24.15
Valuation Fairly Valued
! 3 Warning Signs
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What is Essity AB EBIT?

Essity AB STU:ESWB +0.33% 84 EBIT is €1,696 Mil as of Mar. 2026. GuruFocus rates STU:ESWB with a GF Score™ of 84/100 and a GF Value™ of €24.15 (Fairly Valued). The stock has 3 warning signs investors should review.

Essity AB's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €407 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €1,696 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Essity AB's annualized ROC % for the quarter that ended in Mar. 2026 was 8.61%. Essity AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 31.85%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Essity AB's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 8.81%.


Essity AB  (STU:ESWB) EBIT Explanation

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

Essity AB'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 )
=1627.284 * ( 1 - 26.41% )/( (12861.69 + 14956.464)/ 2 )
=1197.5182956/13909.077
=8.61 %

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))
=15356.654 - 1637.794 - ( 857.17 - max(0, 3748.833 - 4987.724+857.17))
=12861.69

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))
=16790.592 - 1559.51 - ( 1125.395 - max(0, 5247.727 - 5522.345+1125.395))
=14956.464

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

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

Essity AB'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 )
=1627.284/( ( (4600.306 + max(801.117, 0)) + (4816.211 + max(-1201.709, 0)) )/ 2 )
=1627.284/( ( 5401.423 + 4816.211 )/ 2 )
=1627.284/5108.817
=31.85 %

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)
=(1960.244 + 1665.546 + 324.104) - (1637.794 + 0 + 1510.983)
=801.117

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2106.425 + 1800.613 + 138.98) - (1559.51 + 0 + 3688.217)
=-1201.709

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:

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1696.457/19266.920
=8.81 %

* 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.


Essity AB EBIT Related Terms


Essity AB EBIT Historical Data

* Premium members only.

The historical data trend for Essity AB'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.

Essity AB EBIT Chart

Essity AB 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 1,076.46 777.81 1,377.52 1,619.98 1,722.34

Essity AB 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 405.32 403.16 439.79 446.69 406.82

STU:ESWB vs PG, CL, KVUE: EBIT Comparison

For the Household & Personal Products subindustry, Essity AB'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.


Essity AB EV-to-EBIT vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's EV-to-EBIT distribution charts can be found below:

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


STU:ESWB
84GF Score
Essity AB STU:ESWB
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Essity AB 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 €1,696 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 €1,696 Mil mean?
Essity AB (STU:ESWB) has a EBIT of €1,696 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Essity AB.
Is Essity AB's EBIT too high?
Essity AB's current EBIT is €1,696 Mil. Overall, Essity AB has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essity AB's EBIT compare to PG and CL?
Essity AB's EBIT of €1,696 Mil can be compared against companies in the Consumer Packaged Goods 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 Consumer Packaged Goods company?
A good EBIT depends on the Consumer Packaged Goods 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 Essity AB. Essity AB's current EBIT is €1,696 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essity AB stock overvalued right now?
Based on GuruFocus' analysis, Essity AB (STU:ESWB) is currently considered Fairly Valued. The stock's GF Value™ is €24.15, compared to a current price of €24.40 — trading 1% above its estimated fair value. The current EBIT is €1,696 Mil. Essity AB's overall GF Score™ is 84/100 with 3 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 Essity AB (STU:ESWB), the current EBIT is €1,696 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 Essity AB (STU:ESWB) Overvalued in 2026?

Based on GuruFocus' analysis, Essity AB stock appears to be overvalued. The current stock price of €24.40 is trading 1% above its estimated GF Value™ of €24.15. GuruFocus considers Essity AB to be Fairly Valued.

Key valuation signals for STU:ESWB:

  • EBIT: €1,696 Mil
  • GF Value™: €24.15 vs. price of €24.40 (1% above fair value)
  • GF Score™: 84/100 with 3 warning signs

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


Essity AB Business Description

Address Klarabergsviadukten 63, PO Box 200, Stockholm, SWE, SE-101 23
Essity is a health and hygiene company spun out of Svenska Cellulosa in June 2017. Essity's products span the feminine care, baby care, toilet paper, facial tissue, and wet wipes categories, as well as hand soap, hand sanitizers, and tissue dispensers for institutional customers. Essity also offers medical solutions in the form of wound care, orthopedics, and compression therapy, accounting for around 8% of net sales. Essity operates in 150 markets and generates 61% of its revenue in Europe.
84GF Score

Get the complete analysis for STU:ESWB

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

€24.40
Price
€24.15
GF Value