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GuruFocus has detected 2 Warning Signs with TripAdvisor Inc $TRIP.
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TripAdvisor Inc (NAS:TRIP)
EV-to-EBIT
33.16 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, TripAdvisor Inc's enterprise value is $4,941 Mil. TripAdvisor Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $149 Mil. Therefore, TripAdvisor Inc's EV/EBIT ratio for today is 33.16.

TRIP' s EV-to-EBIT Range Over the Past 10 Years
Min: -119   Max: 66.4
Current: 33.14

-119
66.4

During the past 9 years, the highest EV/EBIT Ratio of TripAdvisor Inc was 66.40. The lowest was -119.00. And the median was 37.05.

TRIP's EV-to-EBIT is ranked lower than
77% of the 667 Companies
in the Global Leisure industry.

( Industry Median: 18.08 vs. TRIP: 33.14 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). TripAdvisor Inc's enterprise value for the quarter that ended in Mar. 2017 was $5,565 Mil. TripAdvisor Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $149 Mil. TripAdvisor Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 2.68%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4940.720/149
=33.16

TripAdvisor Inc's current Enterprise Value is $4,941 Mil.
TripAdvisor Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 48 (Jun. 2016 ) + 66 (Sep. 2016 ) + 7 (Dec. 2016 ) + 28 (Mar. 2017 ) = $149 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).

TripAdvisor 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 )
=149/5564.7604
=2.68 %

TripAdvisor Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $5,565 Mil.
TripAdvisor Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 48 (Jun. 2016 ) + 66 (Sep. 2016 ) + 7 (Dec. 2016 ) + 28 (Mar. 2017 ) = $149 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.

TripAdvisor Inc Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 0.000.000.000.00-77.1019.8939.6831.7647.6438.53

TripAdvisor Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 31.7635.8239.5226.3447.6444.6451.2164.4338.5337.35
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