Switch to:
Diageo PLC (NYSE:DEO)
EV/EBITDA
13.69 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Diageo PLC's enterprise value is $89,210 Mil. Diageo PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $6,676 Mil. Therefore, Diageo PLC's EV/EBITDA ratio for today is 13.69.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Diageo PLC's stock price is $119.51. Diageo PLC's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $6.10. Therefore, Diageo PLC's P/E Ratio for today is 19.80.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Diageo PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=89209.596/6675.76791809
=13.36

Diageo PLC's current Enterprise Value is $89,210 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $6,676 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Diageo PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=119.51/6.09556313993
=19.61

Diageo PLC's share price for today is $119.51.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diageo PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $6.10.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Diageo PLC Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda 11.6312.3613.2710.9910.7510.7312.6612.9213.7514.37

Diageo PLC Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
ev2ebitda 12.9910.7311.8312.6614.2012.9213.9113.750.0014.37
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide