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GuruFocus has detected 1 Warning Sign with Ensco PLC $ESV.
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Ensco PLC (NYSE:ESV)
EV-to-EBIT
5.36 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Ensco PLC's enterprise value is $5,199 Mil. Ensco PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $971 Mil. Therefore, Ensco PLC's EV/EBIT ratio for today is 5.36.

ESV' s EV-to-EBIT Range Over the Past 10 Years
Min: -6.6   Max: 24.7
Current: 5.37

-6.6
24.7

During the past 13 years, the highest EV/EBIT Ratio of Ensco PLC was 24.70. The lowest was -6.60. And the median was 7.20.

ESV's EV-to-EBIT is ranked higher than
86% of the 43 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 9999.00 vs. ESV: 5.37 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Ensco PLC's enterprise value for the quarter that ended in Mar. 2017 was $5,592 Mil. Ensco PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $971 Mil. Ensco PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 17.36%.


Definition

Ensco PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=5199.440/970.9
=5.36

Ensco PLC's current Enterprise Value is $5,199 Mil.
Ensco PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 683.5 (Jun. 2016 ) + 137.9 (Sep. 2016 ) + 90.8 (Dec. 2016 ) + 58.7 (Mar. 2017 ) = $971 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).

Ensco PLC'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 )
=970.9/5592.495
=17.36 %

Ensco PLC's Enterprise Value for the quarter that ended in Mar. 2017 was $5,592 Mil.
Ensco PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 683.5 (Jun. 2016 ) + 137.9 (Sep. 2016 ) + 90.8 (Dec. 2016 ) + 58.7 (Mar. 2017 ) = $971 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.

Ensco PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 6.842.544.7410.3318.4112.699.61-4.86-6.534.59

Ensco PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit -4.86-4.08-5.97-4.55-6.53-4.96-5.51-4.044.595.76
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