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GuruFocus has detected 3 Warning Signs with Nuance Communications Inc $NUAN.
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Nuance Communications Inc (NAS:NUAN)
EV-to-EBIT
64.16 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Nuance Communications Inc's enterprise value is $7,186 Mil. Nuance Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $112 Mil. Therefore, Nuance Communications Inc's EV/EBIT ratio for today is 64.16.

NUAN' s EV-to-EBIT Range Over the Past 10 Years
Min: -341.4   Max: 3633.2
Current: 64.16

-341.4
3633.2

During the past 13 years, the highest EV/EBIT Ratio of Nuance Communications Inc was 3633.20. The lowest was -341.40. And the median was 90.70.

NUAN's EV-to-EBIT is ranked lower than
84% of the 1770 Companies
in the Global Software - Application industry.

( Industry Median: 17.68 vs. NUAN: 64.16 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Nuance Communications Inc's enterprise value for the quarter that ended in Mar. 2017 was $6,777 Mil. Nuance Communications Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $112 Mil. Nuance Communications Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 1.65%.


Definition

Nuance Communications Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=7185.781/111.993
=64.16

Nuance Communications Inc's current Enterprise Value is $7,186 Mil.
Nuance Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 29.209 (Jun. 2016 ) + 45.153 (Sep. 2016 ) + 24.445 (Dec. 2016 ) + 13.186 (Mar. 2017 ) = $112 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).

Nuance Communications 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 )
=111.993/6776.6992
=1.65 %

Nuance Communications Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $6,777 Mil.
Nuance Communications Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 29.209 (Jun. 2016 ) + 45.153 (Sep. 2016 ) + 24.445 (Dec. 2016 ) + 13.186 (Mar. 2017 ) = $112 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.

Nuance Communications Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebit 99.0486.7065.55125.2799.9058.16180.18-290.53174.3844.79

Nuance Communications Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit -330.42858.18370.79174.3896.9983.2552.4244.7946.370.00
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