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GuruFocus has detected 4 Warning Signs with Eaton Corp PLC $ETN.
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Eaton Corp PLC (NYSE:ETN)
EV-to-EBIT
18.24 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Eaton Corp PLC's enterprise value is $41,624 Mil. Eaton Corp PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $2,282 Mil. Therefore, Eaton Corp PLC's EV/EBIT ratio for today is 18.24.

ETN' s EV-to-EBIT Range Over the Past 10 Years
Min: 7.7   Max: 36
Current: 18.23

7.7
36

During the past 13 years, the highest EV/EBIT Ratio of Eaton Corp PLC was 36.00. The lowest was 7.70. And the median was 15.80.

ETN's EV-to-EBIT is ranked lower than
54% of the 1509 Companies
in the Global Diversified Industrials industry.

( Industry Median: 16.97 vs. ETN: 18.23 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Eaton Corp PLC's enterprise value for the quarter that ended in Mar. 2017 was $40,899 Mil. Eaton Corp PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $2,282 Mil. Eaton Corp PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 5.58%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=41623.900/2282
=18.24

Eaton Corp PLC's current Enterprise Value is $41,624 Mil.
Eaton Corp PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 615 (Jun. 2016 ) + 617 (Sep. 2016 ) + 540 (Dec. 2016 ) + 510 (Mar. 2017 ) = $2,282 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).

Eaton Corp 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 )
=2282/40899.295
=5.58 %

Eaton Corp PLC's Enterprise Value for the quarter that ended in Mar. 2017 was $40,899 Mil.
Eaton Corp PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 615 (Jun. 2016 ) + 617 (Sep. 2016 ) + 540 (Dec. 2016 ) + 510 (Mar. 2017 ) = $2,282 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.

Eaton Corp PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 14.859.5629.9716.7210.3323.0720.5316.2813.6216.74

Eaton Corp PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 16.2816.1615.6913.2913.6216.2315.6716.1616.7417.92
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