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Diageo PLC (NYSE:DEO)
EV/EBIT
18.85 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Diageo PLC's enterprise value is $86,321 Mil. Diageo PLC's operating income for the trailing twelve months (TTM) ended in Jun. 2014 was $4,580 Mil. Therefore, Diageo PLC's EV/EBIT ratio for today is 18.85.

DEO' s 10-Year EV/EBIT Range
Min: 11.7   Max: 21.8
Current: 20.37

11.7
21.8

During the past 13 years, the highest EV/EBIT Ratio of Diageo PLC was 21.80. The lowest was 11.70. And the median was 15.40.

DEO's EV/EBITis ranked higher than
78% of the 294 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 20.01 vs. DEO: 20.37 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Diageo PLC's enterprise value for the quarter that ended in Jun. 2014 was $102,517 Mil. Diageo PLC's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $4,580 Mil. Diageo PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 was 4.47%.


Definition

Diageo PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=86320.710/4580.37225042
=18.85

Diageo PLC's current Enterprise Value is $86,321 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $4,580 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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).

Diageo PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jun. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jun. 2014 )
=4580.37225042/102517.448814
=4.47 %

Diageo PLC's Enterprise Value for the quarter that ended in Jun. 2014 was $102,517 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was $4,580 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Diageo PLC Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebit 16.7915.6516.3913.9013.5914.5416.3817.0916.7222.40

Diageo PLC Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
ev2ebit 14.6514.5413.3616.3816.1717.0915.5816.720.0022.40
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