EV/EBIT

EV / GAAP operating income

One of the 61 measures in Stock Scorer, under Valuation — What does the price ask for what the company earns, owns and pays out?

How it is worked out

Enterprise value ÷ operating income

Enterprise value is market capitalisation plus debt and finance leases, minus cash and short-term investments: what buying the whole business would cost, free of its balance sheet. Divided by operating profit it is the years of profit being paid for.

How to read it

10x earns a 10, 100x a 1

Which figures it needs

Computed from 7 figures taken from the filing:

• operating_income
• debt_long
• debt_short
• finance_lease_long
• finance_lease_short
• cash
• short_term_investments

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• OperatingIncomeLoss
• ProfitLossFromOperatingActivities
• LongTermDebtAndCapitalLeaseObligations
• LongTermDebtNoncurrent
• LongTermDebt
• NotesPayableNoncurrent
• LongTermDebtAndCapitalLeaseObligationsCurrent
• LongTermDebtCurrent
• DebtCurrent
• ShortTermBorrowings
• NotesPayableCurrent
• FinanceLeaseLiabilityNoncurrent
• FinanceLeaseLiabilityCurrent
• CashAndCashEquivalentsAtCarryingValue
• CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
• CashAndCashEquivalents
• ShortTermInvestments
• AvailableForSaleSecuritiesDebtSecuritiesCurrent
• MarketableSecuritiesCurrent
• OtherShortTermInvestments
• OtherCurrentFinancialAssets

Whether it counts

This measure is counted in Valuation by default. It can be taken out on the dashboard, and the dimension is then measured over whatever is left.