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GuruFocus has detected 6 Warning Signs with Danaher Corp $DHR.
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Danaher Corp (NYSE:DHR)
EV-to-EBIT
23.62 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Danaher Corp's enterprise value is $68,722 Mil. Danaher Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $2,909 Mil. Therefore, Danaher Corp's EV/EBIT ratio for today is 23.62.

DHR' s EV-to-EBIT Range Over the Past 10 Years
Min: 8   Max: 35.6
Current: 23.61

8
35.6

During the past 13 years, the highest EV/EBIT Ratio of Danaher Corp was 35.60. The lowest was 8.00. And the median was 12.50.

DHR's EV-to-EBIT is ranked higher than
58% of the 189 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 23.08 vs. DHR: 23.61 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Danaher Corp's enterprise value for the quarter that ended in Mar. 2017 was $70,511 Mil. Danaher Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $2,909 Mil. Danaher Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 4.13%.


Definition

Danaher Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=68722.050/2909.1
=23.62

Danaher Corp's current Enterprise Value is $68,722 Mil.
Danaher Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 1034.5 (Jun. 2016 ) + 520.4 (Sep. 2016 ) + 728.7 (Dec. 2016 ) + 625.5 (Mar. 2017 ) = $2,909 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).

Danaher 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 )
=2909.1/70511.2306
=4.13 %

Danaher Corp's Enterprise Value for the quarter that ended in Mar. 2017 was $70,511 Mil.
Danaher Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 1034.5 (Jun. 2016 ) + 520.4 (Sep. 2016 ) + 728.7 (Dec. 2016 ) + 625.5 (Mar. 2017 ) = $2,909 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.

Danaher Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 14.078.4812.6710.5311.3410.3711.6120.6121.3120.92

Danaher Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 20.6120.9319.8031.6221.3121.0021.0520.2520.9224.24
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