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GuruFocus has detected 2 Warning Signs with Spirit Airlines Inc $SAVE.
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Spirit Airlines Inc (NAS:SAVE)
EV-to-EBIT
9.60 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Spirit Airlines Inc's enterprise value is $3,902 Mil. Spirit Airlines Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $406 Mil. Therefore, Spirit Airlines Inc's EV/EBIT ratio for today is 9.60.

SAVE' s EV-to-EBIT Range Over the Past 10 Years
Min: 1.8   Max: 16.5
Current: 9.61

1.8
16.5

During the past 9 years, the highest EV/EBIT Ratio of Spirit Airlines Inc was 16.50. The lowest was 1.80. And the median was 7.60.

SAVE's EV-to-EBIT is ranked higher than
60% of the 67 Companies
in the Global Airlines industry.

( Industry Median: 11.03 vs. SAVE: 9.61 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Spirit Airlines Inc's enterprise value for the quarter that ended in Mar. 2017 was $3,847 Mil. Spirit Airlines Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $406 Mil. Spirit Airlines Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 10.56%.


Definition

Spirit Airlines Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=3902.241/406.329
=9.60

Spirit Airlines Inc's current Enterprise Value is $3,902 Mil.
Spirit Airlines Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 123.125 (Jun. 2016 ) + 136.258 (Sep. 2016 ) + 86.231 (Dec. 2016 ) + 60.715 (Mar. 2017 ) = $406 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).

Spirit Airlines 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 )
=406.329/3846.9252
=10.56 %

Spirit Airlines Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $3,847 Mil.
Spirit Airlines Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 123.125 (Jun. 2016 ) + 136.258 (Sep. 2016 ) + 86.231 (Dec. 2016 ) + 60.715 (Mar. 2017 ) = $406 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.

Spirit Airlines Inc Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 0.000.000.000.005.454.979.7914.205.279.35

Spirit Airlines Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 14.2012.969.956.645.276.426.026.209.359.47
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