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GuruFocus has detected 4 Warning Signs with General Dynamics Corp $GD.
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General Dynamics Corp (NYSE:GD)
EV-to-EBIT
14.24 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, General Dynamics Corp's enterprise value is $61,394 Mil. General Dynamics Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $4,312 Mil. Therefore, General Dynamics Corp's EV/EBIT ratio for today is 14.24.

GD' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.5   Max: 49.7
Current: 14.23

4.5
49.7

During the past 13 years, the highest EV/EBIT Ratio of General Dynamics Corp was 49.70. The lowest was 4.50. And the median was 10.60.

GD's EV-to-EBIT is ranked higher than
71% of the 261 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 15.25 vs. GD: 14.23 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). General Dynamics Corp's enterprise value for the quarter that ended in Mar. 2017 was $58,512 Mil. General Dynamics Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $4,312 Mil. General Dynamics Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 7.37%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=61394.380/4312
=14.24

General Dynamics Corp's current Enterprise Value is $61,394 Mil.
General Dynamics Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 1070 (Jun. 2016 ) + 1069 (Sep. 2016 ) + 1138 (Dec. 2016 ) + 1035 (Mar. 2017 ) = $4,312 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).

General Dynamics 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 )
=4312/58511.864
=7.37 %

General Dynamics Corp's Enterprise Value for the quarter that ended in Mar. 2017 was $58,512 Mil.
General Dynamics Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 1070 (Jun. 2016 ) + 1069 (Sep. 2016 ) + 1138 (Dec. 2016 ) + 1035 (Mar. 2017 ) = $4,312 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.

General Dynamics Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 11.286.687.576.826.4539.478.7111.5810.3812.80

General Dynamics Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 11.5810.8010.7710.3310.3810.2010.7811.8512.8013.57
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