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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Diageo PLC's enterprise value is $91,277 Mil. Diageo PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $6,341 Mil. Therefore, Diageo PLC's EV/EBITDA ratio for today is 13.13.

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 $122.08. Diageo PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $5.99. Therefore, Diageo PLC's P/E Ratio for today is 18.40.

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)
=91276.609/6341.42640364
=14.39

Diageo PLC's current Enterprise Value is $91,277 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. 2013 was $6,341 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)
=122.08/5.9908952959
=20.38

Diageo PLC's share price for today is $122.08.
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. 2013 was $5.99.

* 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev2ebitda 10.0910.7412.3613.2710.9110.7510.8312.6612.9213.52

Diageo PLC Semi-Annual Data

Jun09Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13
ev2ebitda 10.7512.9910.8311.8312.6614.2012.9213.9113.520.00
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