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GuruFocus has detected 1 Warning Sign with F5 Networks Inc $FFIV.
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F5 Networks Inc (NAS:FFIV)
EV-to-EBIT
12.50 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, F5 Networks Inc's enterprise value is $7,218 Mil. F5 Networks Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $577 Mil. Therefore, F5 Networks Inc's EV/EBIT ratio for today is 12.50.

FFIV' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.7   Max: 46
Current: 12.51

9.7
46

During the past 13 years, the highest EV/EBIT Ratio of F5 Networks Inc was 46.00. The lowest was 9.70. And the median was 17.60.

FFIV's EV-to-EBIT is ranked higher than
69% of the 1265 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 18.76 vs. FFIV: 12.51 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). F5 Networks Inc's enterprise value for the quarter that ended in Mar. 2017 was $8,126 Mil. F5 Networks Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $577 Mil. F5 Networks Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 7.11%.


Definition

F5 Networks Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=7218.196/577.472
=12.50

F5 Networks Inc's current Enterprise Value is $7,218 Mil.
F5 Networks Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 138.862 (Jun. 2016 ) + 162.633 (Sep. 2016 ) + 137.454 (Dec. 2016 ) + 138.523 (Mar. 2017 ) = $577 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).

F5 Networks Inc'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 )
=577.472/8125.5387
=7.11 %

F5 Networks Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $8,126 Mil.
F5 Networks Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 138.862 (Jun. 2016 ) + 162.633 (Sep. 2016 ) + 137.454 (Dec. 2016 ) + 138.523 (Mar. 2017 ) = $577 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.

F5 Networks Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebit 28.9416.7023.1134.4114.4918.0714.3016.3513.2913.26

F5 Networks Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 17.0814.0514.0113.2910.6511.8312.6313.2615.1714.07
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