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GuruFocus has detected 3 Warning Signs with Brown-Forman Corp $BF.B.
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Brown-Forman Corp (NYSE:BF.B)
EV-to-EBIT
14.03 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Brown-Forman Corp's enterprise value is $21,197 Mil. Brown-Forman Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $1,511 Mil. Therefore, Brown-Forman Corp's EV/EBIT ratio for today is 14.03.

BF.B' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.7   Max: 25.1
Current: 14.05

9.7
25.1

During the past 13 years, the highest EV/EBIT Ratio of Brown-Forman Corp was 25.10. The lowest was 9.70. And the median was 15.10.

BF.B's EV-to-EBIT is ranked higher than
68% of the 184 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 17.37 vs. BF.B: 14.05 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Brown-Forman Corp's enterprise value for the quarter that ended in Oct. 2016 was $19,808 Mil. Brown-Forman Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $1,511 Mil. Brown-Forman Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 was 7.63%.


Definition

Brown-Forman Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=21196.921/1511
=14.03

Brown-Forman Corp's current Enterprise Value is $21,197 Mil.
Brown-Forman Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 278 (Jan. 2016 ) + 727 (Apr. 2016 ) + 214 (Jul. 2016 ) + 292 (Oct. 2016 ) = $1,511 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).

Brown-Forman Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2016 )=EBIT (TTM)/Enterprise Value (Q: Oct. 2016 )
=1511/19807.8309
=7.63 %

Brown-Forman Corp's Enterprise Value for the quarter that ended in Oct. 2016 was $19,808 Mil.
Brown-Forman Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 278 (Jan. 2016 ) + 727 (Apr. 2016 ) + 214 (Jul. 2016 ) + 292 (Oct. 2016 ) = $1,511 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.

Brown-Forman Corp Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ev2ebit 14.5813.5011.9513.0312.0715.4117.6420.1419.5214.18

Brown-Forman Corp Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebit 19.4220.9819.7719.5224.8123.8822.7014.1814.7713.70
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