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GuruFocus has detected 2 Warning Signs with Motorola Solutions Inc $MSI.
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Motorola Solutions Inc (NYSE:MSI)
EV-to-EBIT
14.58 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Motorola Solutions Inc's enterprise value is $17,042 Mil. Motorola Solutions Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,169 Mil. Therefore, Motorola Solutions Inc's EV/EBIT ratio for today is 14.58.

MSI' s EV-to-EBIT Range Over the Past 10 Years
Min: -144.8   Max: 553.3
Current: 14.58

-144.8
553.3

During the past 13 years, the highest EV/EBIT Ratio of Motorola Solutions Inc was 553.30. The lowest was -144.80. And the median was 11.05.

MSI's EV-to-EBIT is ranked higher than
53% of the 464 Companies
in the Global Communication Equipment industry.

( Industry Median: 16.69 vs. MSI: 14.58 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Motorola Solutions Inc's enterprise value for the quarter that ended in Mar. 2017 was $17,791 Mil. Motorola Solutions Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $1,169 Mil. Motorola Solutions Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 6.57%.


Definition

Motorola Solutions Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=17041.561/1169
=14.58

Motorola Solutions Inc's current Enterprise Value is $17,042 Mil.
Motorola Solutions Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 226 (Jun. 2016 ) + 351 (Sep. 2016 ) + 418 (Dec. 2016 ) + 174 (Mar. 2017 ) = $1,169 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).

Motorola Solutions 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 )
=1169/17790.5958
=6.57 %

Motorola Solutions Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $17,791 Mil.
Motorola Solutions Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 226 (Jun. 2016 ) + 351 (Sep. 2016 ) + 418 (Dec. 2016 ) + 174 (Mar. 2017 ) = $1,169 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.

Motorola Solutions Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -140.88-2.84136.315.5312.7510.3212.87-14.9513.0515.87

Motorola Solutions Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit -14.95-14.85-14.48-18.2013.0516.1814.8114.7615.8715.22
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