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GuruFocus has detected 6 Warning Signs with Kellogg Co $K.
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Kellogg Co (NYSE:K)
EV-to-EBIT
24.80 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Kellogg Co's enterprise value is $33,057 Mil. Kellogg Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,333 Mil. Therefore, Kellogg Co's EV/EBIT ratio for today is 24.80.

K' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.9   Max: 53
Current: 24.8

9.9
53

During the past 13 years, the highest EV/EBIT Ratio of Kellogg Co was 53.00. The lowest was 9.90. And the median was 13.80.

K's EV-to-EBIT is ranked lower than
65% of the 1308 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.55 vs. K: 24.80 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Kellogg Co's enterprise value for the quarter that ended in Dec. 2016 was $33,302 Mil. Kellogg Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $1,333 Mil. Kellogg Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 4.00%.


Definition

Kellogg Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=33056.703/1333
=24.80

Kellogg Co's current Enterprise Value is $33,057 Mil.
Kellogg Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 438 (Mar. 2016 ) + 453 (Jun. 2016 ) + 413 (Sep. 2016 ) + 29 (Dec. 2016 ) = $1,333 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).

Kellogg Co'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 )
=1333/33301.5
=4.00 %

Kellogg Co's Enterprise Value for the quarter that ended in Dec. 2016 was $33,302 Mil.
Kellogg Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 438 (Mar. 2016 ) + 453 (Jun. 2016 ) + 413 (Sep. 2016 ) + 29 (Dec. 2016 ) = $1,333 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.

Kellogg Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 13.4511.3212.5511.9016.6917.5710.3129.2333.0924.98

Kellogg Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 10.6729.2340.0644.2049.8333.0932.1631.0027.6924.98
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