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Diageo PLC (NYSE:DEO)
Enterprise Value
$80,467 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Diageo PLC's enterprise value is $80,467 Mil. Diageo PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $4,896 Mil. Therefore, Diageo PLC's EV/EBIT ratio for today is 16.43.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Diageo PLC's enterprise value is $80,467 Mil. Diageo PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2016 was $5,568 Mil. Therefore, Diageo PLC's EV/EBITDA ratio for today is 14.45.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Diageo PLC's enterprise value is $80,467 Mil. Diageo PLC's revenue for the trailing twelve months (TTM) ended in Jun. 2016 was $14,893 Mil. Therefore, Diageo PLC's EV/Revenue ratio for today is 5.40.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Diageo PLC's Enterprise Value for the fiscal year that ended in Jun. 2016 is calculated as

Enterprise Value (A: Jun. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=77729.168+0+11464.4886364
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+2923.29545455+2343.75-2250
=92,211

Diageo PLC's Enterprise Value for the quarter that ended in Jun. 2016 is calculated as

Enterprise Value (Q: Jun. 2016 )
=Market Cap+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=77729.168+0+11464.4886364
+Current Portion of Long-Term Debt+Minority Interest-Cash and Cash Equivalents
+2923.29545455+2343.75-2250
=92,211

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

Diageo PLC's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=80467.123/4896.30681818
=16.43

Diageo PLC's current Enterprise Value is $80,467 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2016 was $4,896 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Diageo PLC's EV/EBITDA for today is:

Diageo PLC's current Enterprise Value is $80,467 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2016 was $5,568 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Diageo PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=80467.123/14893.4659091
=5.40

Diageo PLC's current Enterprise Value is $80,467 Mil.
For company reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2016 was $14,893 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt & Capital Lease Obligation, Cash and Cash Equivalents, Current Portion of Long-Term Debt


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Diageo PLC Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev 70,94565,99653,91953,92368,44284,55086,544103,26896,73392,211

Diageo PLC Semi-Annual Data

Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16
ev 74,87384,55087,26486,54498,930103,26890,32396,73391,03492,211
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