Switch to:
GuruFocus has detected 4 Warning Signs with Level 3 Communications Inc $LVLT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Level 3 Communications Inc (NYSE:LVLT)
EV-to-EBIT
23.00 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Level 3 Communications Inc's enterprise value is $30,686 Mil. Level 3 Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,334 Mil. Therefore, Level 3 Communications Inc's EV/EBIT ratio for today is 23.00.

LVLT' s EV-to-EBIT Range Over the Past 10 Years
Min: -374.2   Max: 884.5
Current: 23

-374.2
884.5

During the past 13 years, the highest EV/EBIT Ratio of Level 3 Communications Inc was 884.50. The lowest was -374.20. And the median was 23.10.

LVLT's EV-to-EBIT is ranked lower than
68% of the 354 Companies
in the Global Telecom Services industry.

( Industry Median: 16.44 vs. LVLT: 23.00 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Level 3 Communications Inc's enterprise value for the quarter that ended in Mar. 2017 was $29,589 Mil. Level 3 Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,334 Mil. Level 3 Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 4.51%.


Definition

Level 3 Communications Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=30685.650/1334
=23.00

Level 3 Communications Inc's current Enterprise Value is $30,686 Mil.
Level 3 Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 330 (Jun. 2016 ) + 356 (Sep. 2016 ) + 349 (Dec. 2016 ) + 299 (Mar. 2017 ) = $1,334 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).

Level 3 Communications 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 )
=1334/29589.4092
=4.51 %

Level 3 Communications Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $29,589 Mil.
Level 3 Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 330 (Jun. 2016 ) + 356 (Sep. 2016 ) + 349 (Dec. 2016 ) + 299 (Mar. 2017 ) = $1,334 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.

Level 3 Communications Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -19.3526.32-369.98-59.28-158.0635.6526.8430.9531.7821.15

Level 3 Communications Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 30.9531.7032.8632.4631.7830.4024.7819.6221.1522.18
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK