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GuruFocus has detected 5 Warning Signs with AeroVironment Inc $AVAV.
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AeroVironment Inc (NAS:AVAV)
EV-to-EBIT
-36.69 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, AeroVironment Inc's enterprise value is $537.9 Mil. AeroVironment Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $-14.7 Mil. Therefore, AeroVironment Inc's EV/EBIT ratio for today is -36.69.

AVAV' s EV-to-EBIT Range Over the Past 10 Years
Min: -1515.8   Max: 295.4
Current: -36.69

-1515.8
295.4

During the past 13 years, the highest EV/EBIT Ratio of AeroVironment Inc was 295.40. The lowest was -1515.80. And the median was 13.20.

AVAV's EV-to-EBIT is ranked lower than
99.99% of the 261 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 15.25 vs. AVAV: -36.69 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). AeroVironment Inc's enterprise value for the quarter that ended in Jan. 2017 was $420.3 Mil. AeroVironment Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was $-14.7 Mil. AeroVironment Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 was -3.49%.


Definition

AeroVironment Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=537.885/-14.661
=-36.69

AeroVironment Inc's current Enterprise Value is $537.9 Mil.
AeroVironment Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 6.831 (Apr. 2016 ) + -15.58 (Jul. 2016 ) + -4.487 (Oct. 2016 ) + -1.425 (Jan. 2017 ) = $-14.7 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).

AeroVironment Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2017 )=EBIT (TTM)/Enterprise Value (Q: Jan. 2017 )
=-14.661/420.2624
=-3.49 %

AeroVironment Inc's Enterprise Value for the quarter that ended in Jan. 2017 was $420.3 Mil.
AeroVironment Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2017 was 6.831 (Apr. 2016 ) + -15.58 (Jul. 2016 ) + -4.487 (Oct. 2016 ) + -1.425 (Jan. 2017 ) = $-14.7 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.

AeroVironment Inc Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ev2ebit 9.1111.6111.2613.5312.969.2776.0547.12182.6945.96

AeroVironment Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 101.72263.71182.69-677.7031.7536.2445.96136.57-43.30-28.67
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