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GuruFocus has detected 3 Warning Signs with Morgan Stanley $MS.
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Morgan Stanley (NYSE:MS)
EV-to-EBIT
22.09 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Morgan Stanley's enterprise value is $219,104 Mil. Morgan Stanley's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $9,918 Mil. Therefore, Morgan Stanley's EV/EBIT ratio for today is 22.09.

MS' s EV-to-EBIT Range Over the Past 10 Years
Min: -1625.3   Max: 1883.3
Current: 22.09

-1625.3
1883.3

During the past 13 years, the highest EV/EBIT Ratio of Morgan Stanley was 1883.30. The lowest was -1625.30. And the median was 33.70.

MS's EV-to-EBIT is ranked lower than
66% of the 603 Companies
in the Global Capital Markets industry.

( Industry Median: 15.70 vs. MS: 22.09 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Morgan Stanley's enterprise value for the quarter that ended in Mar. 2017 was $219,992 Mil. Morgan Stanley's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $9,918 Mil. Morgan Stanley's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 4.51%.


Definition

Morgan Stanley's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=219103.758/9918
=22.09

Morgan Stanley's current Enterprise Value is $219,104 Mil.
Morgan Stanley's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2483 (Jun. 2016 ) + 2381 (Sep. 2016 ) + 2246 (Dec. 2016 ) + 2808 (Mar. 2017 ) = $9,918 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).

Morgan Stanley'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 )
=9918/219991.5308
=4.51 %

Morgan Stanley's Enterprise Value for the quarter that ended in Mar. 2017 was $219,992 Mil.
Morgan Stanley's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2483 (Jun. 2016 ) + 2381 (Sep. 2016 ) + 2246 (Dec. 2016 ) + 2808 (Mar. 2017 ) = $9,918 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.

Morgan Stanley Annual Data

Nov07Nov08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 147.2967.53216.9132.0032.60255.2630.4256.5521.3024.91

Morgan Stanley Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 56.5538.5140.9143.2721.3022.7023.3923.7924.9122.18
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