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GuruFocus has detected 5 Warning Signs with Diageo PLC $DEO.
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Diageo PLC (NYSE:DEO)
EV-to-EBITDA
15.32 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Diageo PLC's enterprise value is $85,280 Mil. Diageo PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $5,568 Mil. Therefore, Diageo PLC's EV/EBITDA ratio for today is 15.32.

DEO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 9.2   Max: 17.5
Current: 16.82

9.2
17.5

During the past 13 years, the highest EV/EBITDA Ratio of Diageo PLC was 17.50. The lowest was 9.20. And the median was 12.70.

DEO's EV-to-EBITDA is ranked lower than
64% of the 190 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 13.45 vs. DEO: 16.82 )

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 $116.23. Diageo PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $5.06. Therefore, Diageo PLC's P/E Ratio for today is 22.96.

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)
=85280.342/5568.18181818
=15.32

Diageo PLC's current Enterprise Value is $85,280 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. 2016 was $5,568 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=116.23/5.0625
=22.96

Diageo PLC's share price for today is $116.23.
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. 2016 was $5.06.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Diageo PLC Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebitda 13.2711.7510.7510.5512.6613.1813.7515.2815.2717.27

Diageo PLC Semi-Annual Data

Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
ev2ebitda 13.1813.9113.750.0015.280.0015.270.0017.270.00
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