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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Diageo PLC's enterprise value is $90,587 Mil. Diageo PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $5,477 Mil. Therefore, Diageo PLC's EV/EBIT ratio for today is 16.54.

DEO' s EV/EBIT Range Over the Past 10 Years
Min: 10   Max: 18
Current: 17.78

10
18

During the past 13 years, the highest EV/EBIT Ratio of Diageo PLC was 18.00. The lowest was 10.00. And the median was 13.60.

DEO's EV/EBIT is ranked lower than
54% of the 178 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 16.67 vs. DEO: 17.78 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Diageo PLC's enterprise value for the quarter that ended in Dec. 2015 was $91,034 Mil. Diageo PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2015 was $5,477 Mil. Diageo PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2015 was 6.02%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=90587.424/5476.63551402
=16.54

Diageo PLC's current Enterprise Value is $90,587 Mil.
For company reported semi-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 Dec. 2015 was $5,477 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 Dec. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2015 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2015 )
=5476.63551402/91034.1520186
=6.02 %

Diageo PLC's Enterprise Value for the quarter that ended in Dec. 2015 was $91,034 Mil.
For company reported semi-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 Dec. 2015 was $5,477 Mil.

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

Diageo PLC Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ev2ebit 13.4714.4012.7911.8112.1414.1414.3314.9618.4717.49

Diageo PLC Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15
ev2ebit 14.1416.1714.3315.5814.960.0018.470.0017.490.00
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