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GuruFocus has detected 6 Warning Signs with National Bankshares Inc $NKSH.
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National Bankshares Inc (NAS:NKSH)
EV-to-EBIT
10.47 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, National Bankshares Inc's enterprise value is $196.15 Mil. National Bankshares Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $18.74 Mil. Therefore, National Bankshares Inc's EV/EBIT ratio for today is 10.47.

NKSH' s EV-to-EBIT Range Over the Past 10 Years
Min: 3.3   Max: 15.9
Current: 10.47

3.3
15.9

During the past 13 years, the highest EV/EBIT Ratio of National Bankshares Inc was 15.90. The lowest was 3.30. And the median was 5.95.

NKSH's EV-to-EBIT is ranked higher than
56% of the 1267 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 12.36 vs. NKSH: 10.47 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). National Bankshares Inc's enterprise value for the quarter that ended in Mar. 2017 was $162.14 Mil. National Bankshares Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $18.74 Mil. National Bankshares Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 11.56%.


Definition

National Bankshares Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=196.150/18.742
=10.47

National Bankshares Inc's current Enterprise Value is $196.15 Mil.
National Bankshares Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 4.955 (Jun. 2016 ) + 4.708 (Sep. 2016 ) + 4.361 (Dec. 2016 ) + 4.718 (Mar. 2017 ) = $18.74 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).

National Bankshares 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 )
=18.742/162.142
=11.56 %

National Bankshares Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $162.14 Mil.
National Bankshares Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 4.955 (Jun. 2016 ) + 4.708 (Sep. 2016 ) + 4.361 (Dec. 2016 ) + 4.718 (Mar. 2017 ) = $18.74 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.

National Bankshares Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 4.445.168.377.024.464.956.284.335.0711.02

National Bankshares Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 4.335.015.035.315.074.897.688.6311.028.65
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