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GuruFocus has detected 2 Warning Signs with Allegiant Travel Co $ALGT.
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Allegiant Travel Co (NAS:ALGT)
EV-to-EBIT
8.50 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Allegiant Travel Co's enterprise value is $2,781 Mil. Allegiant Travel Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $327 Mil. Therefore, Allegiant Travel Co's EV/EBIT ratio for today is 8.50.

ALGT' s EV-to-EBIT Range Over the Past 10 Years
Min: 4   Max: 26.4
Current: 8.5

4
26.4

During the past 13 years, the highest EV/EBIT Ratio of Allegiant Travel Co was 26.40. The lowest was 4.00. And the median was 9.40.

ALGT's EV-to-EBIT is ranked higher than
72% of the 67 Companies
in the Global Airlines industry.

( Industry Median: 11.03 vs. ALGT: 8.50 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Allegiant Travel Co's enterprise value for the quarter that ended in Mar. 2017 was $3,115 Mil. Allegiant Travel Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $327 Mil. Allegiant Travel Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 10.50%.


Definition

Allegiant Travel Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2780.632/327.205
=8.50

Allegiant Travel Co's current Enterprise Value is $2,781 Mil.
Allegiant Travel Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 105.486 (Jun. 2016 ) + 77.929 (Sep. 2016 ) + 69.278 (Dec. 2016 ) + 74.512 (Mar. 2017 ) = $327 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

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

Allegiant Travel Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=327.205/3115.0795
=10.50 %

Allegiant Travel Co's Enterprise Value for the quarter that ended in Mar. 2017 was $3,115 Mil.
Allegiant Travel Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 105.486 (Jun. 2016 ) + 77.929 (Sep. 2016 ) + 69.278 (Dec. 2016 ) + 74.512 (Mar. 2017 ) = $327 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Allegiant Travel Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 10.0914.476.027.699.909.3111.7817.998.388.61

Allegiant Travel Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 17.9916.8113.3013.448.388.526.956.428.619.52
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