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Diageo PLC (NYSE:DEO)
EV/EBITDA
15.04 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Diageo PLC's enterprise value is $92,680 Mil. Diageo PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $6,162 Mil. Therefore, Diageo PLC's EV/EBITDA ratio for today is 15.04.

DEO' s EV/EBITDA Range Over the Past 10 Years
Min: 9.2   Max: 18.16
Current: 18.04

9.2
18.16

During the past 13 years, the highest EV/EBITDA Ratio of Diageo PLC was 18.16. The lowest was 9.20. And the median was 12.60.

DEO's EV/EBITDA is ranked lower than
66% of the 185 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 13.79 vs. DEO: 18.04 )

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 $116.12. Diageo PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2015 was $5.89. Therefore, Diageo PLC's P/E Ratio for today is 19.70.

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)
=92679.589/6161.99376947
=15.04

Diageo PLC's current Enterprise Value is $92,680 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 Dec. 2015 was $6,162 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)
=116.12/5.89408099688
=19.70

Diageo PLC's share price for today is $116.12.
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 Dec. 2015 was $5.89.

* 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebitda 13.2711.7510.7510.5512.6612.9214.6215.5015.5517.27

Diageo PLC Semi-Annual Data

Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16
ev2ebitda 14.2012.9213.9114.620.0015.500.0015.550.0017.27
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