The EV/EBIT of Anglo-Eastern Plantations Plc is 1.58
Enterprise value to earnings before interest and taxes (EV/EBIT) is a financial ratio used to measure if a stock is priced appropriately to similar stocks and the market. It is similar to the P/E ratio.
ttm (trailing twelve months)
The EV/EBIT ratio addresses some of the shortcomings of the P/E ratio. Instead of taking market capitalization, the ratio uses enterprise value, as it takes into account the true value of the company. Enterprise value includes both equity and debt. It is calculated as:
Enterprise value = market cap + total debt – cash and cash equivalents
The EV/EBIT ratio is useful in comparing peers within the wider market. A high EV/EBIT ratio indicates that a company’s stock is overvalued. On the opposite, a low EV/EBIT ratio indicates that a company’s stock is undervalued. The lower the ratio, the more financially stable a company should be. However, investors and analyst should use other ratios and information to get a full picture of a company’s financial state and actual value.
Anglo-Eastern Plantations Plc, together with its subsidiaries, owns, operates, and develops agriculture plantations in Indonesia and Malaysia. It primarily produces crude palm oil and associated products, such as palm kernels, shell nuts, fresh fruit bunches, biomass, and biogas products, as well as rubber slabs. The company also operates three biogas plants that generates and supplies surplus electricity to the national grid. As of December 31, 2020, it operated a planted area of approximately 73,600 hectares. The company was founded in 1985 and is based in London, the United Kingdom. Anglo-Eastern Plantations Plc is a subsidiary of Genton International Limited.