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GuruFocus has detected 2 Warning Signs with ITT Corp $ITT.
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ITT Corp (NYSE:ITT)
EV-to-EBIT
12.39 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, ITT Corp's enterprise value is $3,266 Mil. ITT Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $264 Mil. Therefore, ITT Corp's EV/EBIT ratio for today is 12.39.

ITT' s EV-to-EBIT Range Over the Past 10 Years
Min: -12.5   Max: 19.7
Current: 12.39

-12.5
19.7

During the past 13 years, the highest EV/EBIT Ratio of ITT Corp was 19.70. The lowest was -12.50. And the median was 2.80.

ITT's EV-to-EBIT is ranked higher than
63% of the 1949 Companies
in the Global Diversified Industrials industry.

( Industry Median: 16.53 vs. ITT: 12.39 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). ITT Corp's enterprise value for the quarter that ended in Mar. 2017 was $3,503 Mil. ITT Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $264 Mil. ITT Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 7.52%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3266.071/263.5
=12.39

ITT Corp's current Enterprise Value is $3,266 Mil.
ITT Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 49.5 (Jun. 2016 ) + 134.8 (Sep. 2016 ) + 23.6 (Dec. 2016 ) + 55.6 (Mar. 2017 ) = $264 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).

ITT 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 )
=263.5/3503.0332
=7.52 %

ITT Corp's Enterprise Value for the quarter that ended in Mar. 2017 was $3,503 Mil.
ITT Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 49.5 (Jun. 2016 ) + 134.8 (Sep. 2016 ) + 23.6 (Dec. 2016 ) + 55.6 (Mar. 2017 ) = $264 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.

ITT Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 3.662.091.97-10.96-4.6310.6918.4411.637.9412.23

ITT Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 11.6311.218.596.767.948.2810.2010.1312.2313.29
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