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Hormel Foods Corporation (NYSE:HRL)
EV/EBIT
14.90 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Hormel Foods Corporation's enterprise value is $12,224 Mil. Hormel Foods Corporation's operating income for the trailing twelve months (TTM) ended in Jan. 2014 was $824 Mil. Therefore, Hormel Foods Corporation's EV/EBIT ratio for today is 14.90.

HRL' s 10-Year EV/EBIT Range
Min: 7.6   Max: 16.2
Current: 14.9

7.6
16.2

During the past 13 years, the highest EV/EBIT Ratio of Hormel Foods Corporation was 16.20. The lowest was 7.60. And the median was 11.00.

HRL's EV/EBITis ranked higher than
64% of the 1237 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.33 vs. HRL: 14.90 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hormel Foods Corporation's enterprise value for the quarter that ended in Jan. 2014 was $11,610 Mil. Hormel Foods Corporation's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was $824 Mil. Hormel Foods Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 was 7.10%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=12223.608/824.463
=14.83

Hormel Foods Corporation's current Enterprise Value is $12,224 Mil.
Hormel Foods Corporation's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 186.929 (Apr. 2013 ) + 180.653 (Jul. 2013 ) + 219.689 (Oct. 2013 ) + 237.192 (Jan. 2014 ) = $824 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 Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2014 )
=824.463/11609.8122
=7.10 %

Hormel Foods Corporation's Enterprise Value for the quarter that ended in Jan. 2014 was $11,610 Mil.
Hormel Foods Corporation's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 186.929 (Apr. 2013 ) + 180.653 (Jul. 2013 ) + 219.689 (Oct. 2013 ) + 237.192 (Jan. 2014 ) = $824 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 Corporation Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebit 10.4410.7511.4510.777.999.029.1910.0910.0014.38

Hormel Foods Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebit 10.0910.2810.089.3310.0011.7115.1715.2414.3814.08
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