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GuruFocus has detected 6 Warning Signs with Medtronic PLC $MDT.
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Medtronic PLC (NYSE:MDT)
EV-to-EBIT
24.10 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Medtronic PLC's enterprise value is $137,275 Mil. Medtronic PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $5,696 Mil. Therefore, Medtronic PLC's EV/EBIT ratio for today is 24.10.

MDT' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.7   Max: 31.1
Current: 24.57

8.7
31.1

During the past 13 years, the highest EV/EBIT Ratio of Medtronic PLC was 31.10. The lowest was 8.70. And the median was 15.80.

MDT's EV-to-EBIT is ranked higher than
97% of the 275 Companies
in the Global Medical Devices industry.

( Industry Median: 24.54 vs. MDT: 24.57 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Medtronic PLC's enterprise value for the quarter that ended in Apr. 2017 was $0 Mil. Medtronic PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was $5,696 Mil. Medtronic PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2017 was %.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=137275.430/5696
=24.10

Medtronic PLC's current Enterprise Value is $137,275 Mil.
Medtronic PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 1260 (Jul. 2016 ) + 1476 (Oct. 2016 ) + 1235 (Jan. 2017 ) + 1725 (Apr. 2017 ) = $5,696 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).

Medtronic PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2017 )=EBIT (TTM)/Enterprise Value (Q: Apr. 2017 )
=5696/0
= %

Medtronic PLC's Enterprise Value for the quarter that ended in Apr. 2017 was $0 Mil.
Medtronic PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2017 was 1260 (Jul. 2016 ) + 1476 (Oct. 2016 ) + 1235 (Jan. 2017 ) + 1725 (Apr. 2017 ) = $5,696 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.

Medtronic PLC Annual Data

Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16Apr17
ev2ebit 19.3914.5612.2913.139.1010.1313.8229.5222.600.00

Medtronic PLC Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev2ebit 23.3929.5230.4627.3227.2022.6024.6623.3522.350.00
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