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GuruFocus has detected 5 Warning Signs with Shire PLC $SHPG.
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Shire PLC (NAS:SHPG)
EV-to-EBIT
83.88 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Shire PLC's enterprise value is $80,168 Mil. Shire PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $956 Mil. Therefore, Shire PLC's EV/EBIT ratio for today is 83.88.

SHPG' s EV-to-EBIT Range Over the Past 10 Years
Min: -14   Max: 173.7
Current: 82.19

-14
173.7

During the past 13 years, the highest EV/EBIT Ratio of Shire PLC was 173.70. The lowest was -14.00. And the median was 17.35.

SHPG's EV-to-EBIT is ranked lower than
88% of the 423 Companies
in the Global Biotechnology industry.

( Industry Median: 22.87 vs. SHPG: 82.19 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Shire PLC's enterprise value for the quarter that ended in Dec. 2016 was $73,735 Mil. Shire PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $956 Mil. Shire PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 1.30%.


Definition

Shire PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=80167.750/955.7
=83.88

Shire PLC's current Enterprise Value is $80,168 Mil.
Shire PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 536.4 (Mar. 2016 ) + 103.8 (Jun. 2016 ) + -410.3 (Sep. 2016 ) + 725.8 (Dec. 2016 ) = $956 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).

Shire PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=955.7/73735.3066
=1.30 %

Shire PLC's Enterprise Value for the quarter that ended in Dec. 2016 was $73,735 Mil.
Shire PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 536.4 (Mar. 2016 ) + 103.8 (Jun. 2016 ) + -410.3 (Sep. 2016 ) + 725.8 (Dec. 2016 ) = $956 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.

Shire PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit -9.9026.1216.1617.0817.7815.7514.2912.2430.9883.86

Shire PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 28.7012.2415.1315.1613.7830.9828.2758.87168.8483.86
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