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GuruFocus has detected 5 Warning Signs with Campbell Soup Co $CPB.
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Campbell Soup Co (NYSE:CPB)
EV-to-EBIT
18.44 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Campbell Soup Co's enterprise value is $20,400 Mil. Campbell Soup Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $1,106 Mil. Therefore, Campbell Soup Co's EV/EBIT ratio for today is 18.44.

CPB' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.1   Max: 25
Current: 18.29

9.1
25

During the past 13 years, the highest EV/EBIT Ratio of Campbell Soup Co was 25.00. The lowest was 9.10. And the median was 13.80.

CPB's EV-to-EBIT is ranked lower than
60% of the 1093 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.50 vs. CPB: 18.29 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Campbell Soup Co's enterprise value for the quarter that ended in Oct. 2016 was $19,989 Mil. Campbell Soup Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was $1,106 Mil. Campbell Soup Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2016 was 5.53%.


Definition

Campbell Soup Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=20399.860/1106
=18.44

Campbell Soup Co's current Enterprise Value is $20,400 Mil.
Campbell Soup Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 415 (Jan. 2016 ) + 269 (Apr. 2016 ) + -36 (Jul. 2016 ) + 458 (Oct. 2016 ) = $1,106 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).

Campbell Soup Co'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 )
=1106/19989.38
=5.53 %

Campbell Soup Co's Enterprise Value for the quarter that ended in Oct. 2016 was $19,989 Mil.
Campbell Soup Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Oct. 2016 was 415 (Jan. 2016 ) + 269 (Apr. 2016 ) + -36 (Jul. 2016 ) + 458 (Oct. 2016 ) = $1,106 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.

Campbell Soup Co Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
ev2ebit 13.2414.0011.3110.8710.7910.9917.1713.2218.1023.26

Campbell Soup Co Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebit 13.0713.4913.2018.1019.9020.5221.4623.2618.0719.30
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