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GuruFocus has detected 5 Warning Signs with Valley National Bancorp $VLY.
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Valley National Bancorp (NYSE:VLY)
EV-to-EBIT
24.76 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Valley National Bancorp's enterprise value is $6,115.3 Mil. Valley National Bancorp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $247.0 Mil. Therefore, Valley National Bancorp's EV/EBIT ratio for today is 24.76.

VLY' s EV-to-EBIT Range Over the Past 10 Years
Min: -34.7   Max: 56.2
Current: 24.76

-34.7
56.2

During the past 13 years, the highest EV/EBIT Ratio of Valley National Bancorp was 56.20. The lowest was -34.70. And the median was 27.60.

VLY's EV-to-EBIT is ranked lower than
82% of the 1395 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 11.92 vs. VLY: 24.76 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Valley National Bancorp's enterprise value for the quarter that ended in Mar. 2017 was $6,208.8 Mil. Valley National Bancorp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $247.0 Mil. Valley National Bancorp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 3.98%.


Definition

Valley National Bancorp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=6115.288/246.97
=24.76

Valley National Bancorp's current Enterprise Value is $6,115.3 Mil.
Valley National Bancorp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 54.487 (Jun. 2016 ) + 59.891 (Sep. 2016 ) + 68.426 (Dec. 2016 ) + 64.166 (Mar. 2017 ) = $247.0 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).

Valley National Bancorp'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 )
=246.97/6208.765
=3.98 %

Valley National Bancorp's Enterprise Value for the quarter that ended in Mar. 2017 was $6,208.8 Mil.
Valley National Bancorp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 54.487 (Jun. 2016 ) + 59.891 (Sep. 2016 ) + 68.426 (Dec. 2016 ) + 64.166 (Mar. 2017 ) = $247.0 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.

Valley National Bancorp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 27.4656.6228.9228.4224.8519.1826.6328.0940.4022.90

Valley National Bancorp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 28.0926.6430.4929.9940.4036.5835.3232.2422.9025.14
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