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GuruFocus has detected 3 Warning Signs with United Parcel Service Inc $UPS.
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United Parcel Service Inc (NYSE:UPS)
EV-to-EBIT
15.60 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, United Parcel Service Inc's enterprise value is $85,420 Mil. United Parcel Service Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $5,476 Mil. Therefore, United Parcel Service Inc's EV/EBIT ratio for today is 15.60.

UPS' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.2   Max: 184.3
Current: 15.6

9.2
184.3

During the past 13 years, the highest EV/EBIT Ratio of United Parcel Service Inc was 184.30. The lowest was 9.20. And the median was 14.30.

UPS's EV-to-EBIT is ranked lower than
65% of the 871 Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: 14.84 vs. UPS: 15.60 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). United Parcel Service Inc's enterprise value for the quarter that ended in Mar. 2017 was $106,823 Mil. United Parcel Service Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $5,476 Mil. United Parcel Service Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 5.13%.


Definition

United Parcel Service Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=85420.193/5476
=15.60

United Parcel Service Inc's current Enterprise Value is $85,420 Mil.
United Parcel Service Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2046 (Jun. 2016 ) + 2047 (Sep. 2016 ) + -416 (Dec. 2016 ) + 1799 (Mar. 2017 ) = $5,476 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).

United Parcel Service 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 )
=5476/106822.89
=5.13 %

United Parcel Service Inc's Enterprise Value for the quarter that ended in Mar. 2017 was $106,823 Mil.
United Parcel Service Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 2046 (Jun. 2016 ) + 2047 (Sep. 2016 ) + -416 (Dec. 2016 ) + 1799 (Mar. 2017 ) = $5,476 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.

United Parcel Service Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 121.1711.6816.9613.9512.6455.0214.5521.6712.3520.13

United Parcel Service Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 21.6718.2714.7815.2012.3513.0513.0413.2020.1319.51
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