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Darden Restaurants Inc (NYSE:DRI)
EV/EBIT
27.13 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Darden Restaurants Inc's enterprise value is $9,007 Mil. Darden Restaurants Inc's operating income for the trailing twelve months (TTM) ended in Nov. 2014 was $332 Mil. Therefore, Darden Restaurants Inc's EV/EBIT ratio for today is 27.13.

DRI' s 10-Year EV/EBIT Range
Min: 6.7   Max: 40.3
Current: 27.13

6.7
40.3

During the past 13 years, the highest EV/EBIT Ratio of Darden Restaurants Inc was 40.30. The lowest was 6.70. And the median was 12.00.

DRI's EV/EBITis ranked higher than
64% of the 405 Companies
in the Global Restaurants industry.

( Industry Median: 21.73 vs. DRI: 27.13 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Darden Restaurants Inc's enterprise value for the quarter that ended in Nov. 2014 was $8,956 Mil. Darden Restaurants Inc's Operating Income for the trailing twelve months (TTM) ended in Nov. 2014 was $332 Mil. Darden Restaurants Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2014 was 3.71%.


Definition

Darden Restaurants Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=9006.686/332
=27.13

Darden Restaurants Inc's current Enterprise Value is $9,007 Mil.
Darden Restaurants Inc's Operating Income for the trailing twelve months (TTM) ended in Nov. 2014 was 154.4 (Feb. 2014 ) + 84.3 (May. 2014 ) + 74.5 (Aug. 2014 ) + 18.8 (Nov. 2014 ) = $332 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).

Darden Restaurants Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Nov. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Nov. 2014 )
=332/8956.4235
=3.71 %

Darden Restaurants Inc's Enterprise Value for the quarter that ended in Nov. 2014 was $8,956 Mil.
Darden Restaurants Inc's Operating Income for the trailing twelve months (TTM) ended in Nov. 2014 was 154.4 (Feb. 2014 ) + 84.3 (May. 2014 ) + 74.5 (Aug. 2014 ) + 18.8 (Nov. 2014 ) = $332 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.

Darden Restaurants Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
ev2ebit 12.2010.6512.4911.0311.0011.6111.3312.1523.3924.88

Darden Restaurants Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev2ebit 11.7213.4212.7023.3928.0034.3339.8424.8820.5926.98
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