Cipla (LUX:CIPLA) EV-to-EBIT: 27.02 (As of Jul. 25, 2026) — 28% Above Median

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LUX:CIPLA Cipla Ltd LUX:CIPLA
97 GF Score
Price $18.10
GF Value $19.91
! 3 Warning Signs
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What is Cipla EV-to-EBIT?

Cipla LUX:CIPLA 97 EV-to-EBIT is 27.02 as of Jul. 25, 2026, which is 28% above its 10-year median of 21.10. GuruFocus rates LUX:CIPLA with a GF Score™ of 97/100 and a GF Value™ of $19.91. The stock has 3 warning signs investors should review. Among 690 Drug Manufacturers companies, Cipla ranks worse than 58.26% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Cipla's Enterprise Value is $13,656 Mil. Cipla's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $505 Mil. Therefore, Cipla's EV-to-EBIT for today is 27.02.

The historical rank and industry rank for Cipla's EV-to-EBIT or its related term are showing as below:

LUX:CIPLA' s EV-to-EBIT Range Over the Past 10 Years
Min: 12.52   Med: 21.1   Max: 41.3
Current: 22.79

During the past 13 years, the highest EV-to-EBIT of Cipla was 41.30. The lowest was 12.52. And the median was 21.10.

LUX:CIPLA's EV-to-EBIT is ranked worse than
58.26% of 690 companies
in the Drug Manufacturers industry
Industry Median: 15.46 vs LUX:CIPLA: 22.79

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Cipla's Enterprise Value for the quarter that ended in Jun. 2026 was $14,622 Mil. Cipla's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $505 Mil. Cipla's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 3.46%.


Cipla  (LUX:CIPLA) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers 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) %.

Cipla's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Jun. 2026 ) =EBIT / Enterprise Value (Q: Jun. 2026 )
=505.428/14621.9945
=3.46 %

Cipla's Enterprise Value for the quarter that ended in Jun. 2026 was $14,622 Mil.
Cipla's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $505 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.


Cipla EV-to-EBIT Related Terms


Cipla EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Cipla's EV-to-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.

Cipla EV-to-EBIT Chart

Cipla Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.92 16.34 19.67 15.49 16.97

Cipla Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EV-to-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 17.28 15.67 20.09 16.97 25.77

LUX:CIPLA vs ZTS, UTHR: EV-to-EBIT Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Cipla'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.


Cipla EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Cipla's EV-to-EBIT distribution charts can be found below:

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


LUX:CIPLA
97GF Score
Cipla Ltd LUX:CIPLA
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cipla EV-to-EBIT Calculation

Cipla's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=13656.325/505.428
=27.02

Cipla's current Enterprise Value is $13,656 Mil.
Cipla's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $505 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 EV-to-EBIT →
What does a EV-to-EBIT of 27.02 mean?
Cipla (LUX:CIPLA) has a EV-to-EBIT of 27.02 as of Jul. 25, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cipla and its competitors. This is 28% above median its historical median of 21.10. Over the past decade, Cipla's EV-to-EBIT has ranged from 12.52 to 41.30. According to the industry distribution chart, Cipla ranks #402 out of 690 companies in the Drug Manufacturers industry, placing it in the top 58.3%.
Is Cipla's EV-to-EBIT too high?
Cipla's current EV-to-EBIT of 27.02 is 28% above median its 10-year median of 21.10. Over the past 10 years, this metric has ranged from a low of 12.52 to a high of 41.30. The Drug Manufacturers industry median EV-to-EBIT is 15.46. Cipla's value of 27.02 is 74.8% above this industry median. Based on the distribution chart, Cipla ranks #402 out of 690 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Cipla has a GF Score™ of 97/100, reflecting its overall financial health beyond just this single metric.
How does Cipla's EV-to-EBIT compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Cipla ranks #402 out of 690 companies for EV-to-EBIT. This places Cipla in the lower half of its industry. The industry median EV-to-EBIT is 15.46. Cipla's value of 27.02 is 74.8% above this benchmark. Historically, Cipla's own EV-to-EBIT has ranged from 12.52 to 41.30 over the past decade. While the company's 10-year median is 21.10 vs. the industry median of 15.46, Cipla has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.46, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cipla's current EV-to-EBIT of 27.02 is 74.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Cipla and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cipla's current EV-to-EBIT is 27.02, which is 28% above median its own 10-year median of 21.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cipla stock overvalued right now?
Cipla (LUX:CIPLA) has a current EV-to-EBIT of 27.02. The stock's GF Value™ is $19.91, compared to a current price of $18.10 — trading 9.1% below its estimated fair value. The current EV-to-EBIT is 27.02, which is 28% above median its 10-year median of 21.10 and 74.8% above the Drug Manufacturers industry median of 15.46. Cipla's overall GF Score™ is 97/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Cipla (LUX:CIPLA), the current EV-to-EBIT is 27.02 as of Jul. 25, 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 Cipla (LUX:CIPLA) Overvalued in 2026?

Based on GuruFocus' analysis, Cipla stock appears to be undervalued. The current stock price of $18.10 is trading 9.1% below its estimated GF Value™ of $19.91.

Key valuation signals for LUX:CIPLA:

  • EV-to-EBIT: 27.02 (28% above median its 10-year median of 21.10)
  • GF Value™: $19.91 vs. price of $18.10 (9.1% below fair value)
  • GF Score™: 97/100 with 3 warning signs
  • Industry Position: 74.8% above the Drug Manufacturers median (#402 of 690)

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


Cipla Business Description

Other Exchanges CIPLA:India500087:India
Address Ganpatrao Kadam Marg, Cipla House, Peninsula Business Park, Lower Parel, Mumbai, MH, IND, 400 013
Cipla Ltd is a drug manufacturing company that focuses on a variety of pharmaceutical products. The company's product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments. The bulk of its sales are generated in India, although it maintains a large world-wide presence. Cipla's growth plan focuses on new product launches. It has two segments Pharmaceuticals and new ventures. It derives maximum revenue from Pharmaceuticals Segment.
97GF Score

Get the complete analysis for LUX:CIPLA

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

$18.10
Price
$19.91
GF Value