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GuruFocus has detected 5 Warning Signs with Flowers Foods Inc $FLO.
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Flowers Foods Inc (NYSE:FLO)
EV-to-EBIT
17.52 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Flowers Foods Inc's enterprise value is $4,983 Mil. Flowers Foods Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $284 Mil. Therefore, Flowers Foods Inc's EV/EBIT ratio for today is 17.52.

FLO' s EV-to-EBIT Range Over the Past 10 Years
Min: 10.3   Max: 21.5
Current: 17.36

10.3
21.5

During the past 13 years, the highest EV/EBIT Ratio of Flowers Foods Inc was 21.50. The lowest was 10.30. And the median was 15.00.

FLO's EV-to-EBIT is ranked lower than
57% of the 1368 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.87 vs. FLO: 17.36 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Flowers Foods Inc's enterprise value for the quarter that ended in Dec. 2016 was $5,118 Mil. Flowers Foods Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $284 Mil. Flowers Foods Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 5.56%.


Definition

Flowers Foods Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=4982.609/284.442
=17.52

Flowers Foods Inc's current Enterprise Value is $4,983 Mil.
Flowers Foods Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 101.446 (Mar. 2016 ) + 86.074 (Jun. 2016 ) + 70.888 (Sep. 2016 ) + 26.034 (Dec. 2016 ) = $284 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).

Flowers Foods Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=284.442/5118.0231
=5.56 %

Flowers Foods Inc's Enterprise Value for the quarter that ended in Dec. 2016 was $5,118 Mil.
Flowers Foods Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 101.446 (Mar. 2016 ) + 86.074 (Jun. 2016 ) + 70.888 (Sep. 2016 ) + 26.034 (Dec. 2016 ) = $284 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.

Flowers Foods Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 13.8712.9311.0811.7914.3916.4815.4016.2017.4117.99

Flowers Foods Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 14.9716.2018.4816.3919.6317.4115.3215.3413.0617.99
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