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Hormel Foods Corp (NYSE:HRL)
EV/EBIT
14.53 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Hormel Foods Corp's enterprise value is $13,538 Mil. Hormel Foods Corp's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $932 Mil. Therefore, Hormel Foods Corp's EV/EBIT ratio for today is 14.53.

HRL' s 10-Year EV/EBIT Range
Min: 7.6   Max: 16.2
Current: 14.52

7.6
16.2

During the past 13 years, the highest EV/EBIT Ratio of Hormel Foods Corp was 16.20. The lowest was 7.60. And the median was 11.10.

HRL's EV/EBITis ranked higher than
79% of the 1814 Companies
in the Global Packaged Foods industry.

( Industry Median: 18.91 vs. HRL: 14.52 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hormel Foods Corp's enterprise value for the quarter that ended in Oct. 2014 was $13,988 Mil. Hormel Foods Corp's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was $932 Mil. Hormel Foods Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 was 6.66%.


Definition

Hormel Foods Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=13537.604/931.62
=14.53

Hormel Foods Corp's current Enterprise Value is $13,538 Mil.
Hormel Foods Corp's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 237.192 (Jan. 2014 ) + 216.556 (Apr. 2014 ) + 214.504 (Jul. 2014 ) + 263.368 (Oct. 2014 ) = $932 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).

Hormel Foods Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Oct. 2014 )
=931.62/13988.3334
=6.66 %

Hormel Foods Corp's Enterprise Value for the quarter that ended in Oct. 2014 was $13,988 Mil.
Hormel Foods Corp's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 237.192 (Jan. 2014 ) + 216.556 (Apr. 2014 ) + 214.504 (Jul. 2014 ) + 263.368 (Oct. 2014 ) = $932 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.

Hormel Foods Corp Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebit 10.7511.4510.777.999.029.1910.0910.0014.0015.02

Hormel Foods Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebit 9.3310.0011.7115.1715.2414.0013.7414.1113.1415.02
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