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GuruFocus has detected 3 Warning Signs with Arcos Dorados Holdings Inc $ARCO.
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Arcos Dorados Holdings Inc (NYSE:ARCO)
EV-to-EBIT
12.13 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Arcos Dorados Holdings Inc's enterprise value is USD 2,165 Mil. Arcos Dorados Holdings Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was USD 179 Mil. Therefore, Arcos Dorados Holdings Inc's EV/EBIT ratio for today is 12.13.

ARCO' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.4   Max: 47.5
Current: 12.13

8.4
47.5

During the past 8 years, the highest EV/EBIT Ratio of Arcos Dorados Holdings Inc was 47.50. The lowest was 8.40. And the median was 14.10.

ARCO's EV-to-EBIT is ranked higher than
81% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 16.92 vs. ARCO: 12.13 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Arcos Dorados Holdings Inc's enterprise value for the quarter that ended in Dec. 2016 was USD 1,554 Mil. Arcos Dorados Holdings Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was USD 179 Mil. Arcos Dorados Holdings Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 11.49%.


Definition

Arcos Dorados Holdings Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2165.426/178.58
=12.13

Arcos Dorados Holdings Inc's current Enterprise Value is USD 2,165 Mil.
Arcos Dorados Holdings Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 22.175 (Mar. 2016 ) + 63.751 (Jun. 2016 ) + 38.557 (Sep. 2016 ) + 54.097 (Dec. 2016 ) = USD 179 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).

Arcos Dorados Holdings Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=178.58/1553.786
=11.49 %

Arcos Dorados Holdings Inc's Enterprise Value for the quarter that ended in Dec. 2016 was USD 1,554 Mil.
Arcos Dorados Holdings Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 22.175 (Mar. 2016 ) + 63.751 (Jun. 2016 ) + 38.557 (Sep. 2016 ) + 54.097 (Dec. 2016 ) = USD 179 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.

Arcos Dorados Holdings Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 0.000.000.000.0018.5713.4913.7925.3812.878.70

Arcos Dorados Holdings Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 19.0525.3818.6816.6912.6512.8712.329.468.908.70
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