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

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Hormel Foods Corp's enterprise value is $14,413 Mil. Hormel Foods Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was $1,026 Mil. Therefore, Hormel Foods Corp's EV/EBIT ratio for today is 14.05.

HRL' s 10-Year EV/EBIT Range
Min: 7.6   Max: 16.2
Current: 14.28

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
57% of the 1096 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.70 vs. HRL: 14.28 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hormel Foods Corp's enterprise value for the quarter that ended in Apr. 2015 was $13,986 Mil. Hormel Foods Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was $1,026 Mil. Hormel Foods Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2015 was 7.34%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=14413.298/1026.17
=14.05

Hormel Foods Corp's current Enterprise Value is $14,413 Mil.
Hormel Foods Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was 216.107 (Jul. 2014 ) + 264.134 (Oct. 2014 ) + 267.115 (Jan. 2015 ) + 278.814 (Apr. 2015 ) = $1,026 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 Apr. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2015 )=EBIT (TTM)/Enterprise Value (Q: Apr. 2015 )
=1026.17/13986.4275
=7.34 %

Hormel Foods Corp's Enterprise Value for the quarter that ended in Apr. 2015 was $13,986 Mil.
Hormel Foods Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was 216.107 (Jul. 2014 ) + 264.134 (Oct. 2014 ) + 267.115 (Jan. 2015 ) + 278.814 (Apr. 2015 ) = $1,026 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.

Hormel Foods Corp Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebit 10.5311.3010.488.378.709.1310.099.4213.9015.12

Hormel Foods Corp Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ev2ebit 11.0214.2914.3813.9013.6614.0612.7815.1213.7413.63
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