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GuruFocus has detected 5 Warning Signs with Mohawk Industries Inc $MHK.
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Mohawk Industries Inc (NYSE:MHK)
EV-to-EBIT
15.77 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Mohawk Industries Inc's enterprise value is $20,769 Mil. Mohawk Industries Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,317 Mil. Therefore, Mohawk Industries Inc's EV/EBIT ratio for today is 15.77.

MHK' s EV-to-EBIT Range Over the Past 10 Years
Min: -47.7   Max: 98.4
Current: 15.77

-47.7
98.4

During the past 13 years, the highest EV/EBIT Ratio of Mohawk Industries Inc was 98.40. The lowest was -47.70. And the median was 16.80.

MHK's EV-to-EBIT is ranked lower than
52% of the 606 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 15.08 vs. MHK: 15.77 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Mohawk Industries Inc's enterprise value for the quarter that ended in Mar. 2017 was $19,500 Mil. Mohawk Industries Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,317 Mil. Mohawk Industries Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 6.75%.


Definition

Mohawk Industries Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=20769.100/1317.045
=15.77

Mohawk Industries Inc's current Enterprise Value is $20,769 Mil.
Mohawk Industries Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 356.499 (Jun. 2016 ) + 374.468 (Sep. 2016 ) + 308.462 (Dec. 2016 ) + 277.616 (Mar. 2017 ) = $1,317 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).

Mohawk Industries 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 )
=1317.045/19500.337
=6.75 %

Mohawk Industries Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $19,500 Mil.
Mohawk Industries Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 356.499 (Jun. 2016 ) + 374.468 (Sep. 2016 ) + 308.462 (Dec. 2016 ) + 277.616 (Mar. 2017 ) = $1,317 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.

Mohawk Industries Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 9.59-4.2292.9215.9417.8818.8824.2417.7020.8813.43

Mohawk Industries Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 17.7023.3224.3121.2220.8817.0115.0914.4213.4314.81
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