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GuruFocus has detected 5 Warning Signs with A.O. Smith Corp $AOS.
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A.O. Smith Corp (NYSE:AOS)
EV-to-EBIT
18.48 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, A.O. Smith Corp's enterprise value is $9,003 Mil. A.O. Smith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $487 Mil. Therefore, A.O. Smith Corp's EV/EBIT ratio for today is 18.48.

AOS' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.8   Max: 37.9
Current: 18.48

4.8
37.9

During the past 13 years, the highest EV/EBIT Ratio of A.O. Smith Corp was 37.90. The lowest was 4.80. And the median was 14.50.

AOS's EV-to-EBIT is ranked lower than
56% of the 1949 Companies
in the Global Diversified Industrials industry.

( Industry Median: 16.53 vs. AOS: 18.48 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). A.O. Smith Corp's enterprise value for the quarter that ended in Mar. 2017 was $8,511 Mil. A.O. Smith Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $487 Mil. A.O. Smith Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 5.72%.


Definition

A.O. Smith Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=9003.113/487.1
=18.48

A.O. Smith Corp's current Enterprise Value is $9,003 Mil.
A.O. Smith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 126 (Jun. 2016 ) + 120.5 (Sep. 2016 ) + 118 (Dec. 2016 ) + 122.6 (Mar. 2017 ) = $487 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).

A.O. Smith Corp'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 )
=487.1/8510.57
=5.72 %

A.O. Smith Corp's Enterprise Value for the quarter that ended in Mar. 2017 was $8,511 Mil.
A.O. Smith Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 126 (Jun. 2016 ) + 120.5 (Sep. 2016 ) + 118 (Dec. 2016 ) + 122.6 (Mar. 2017 ) = $487 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.

A.O. Smith Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 11.159.3213.3821.478.9610.2317.6414.8914.2516.56

A.O. Smith Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 14.8916.6316.9113.5014.2513.6115.0616.6516.5617.47
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