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Darden Restaurants Inc (NYSE:DRI)
EV/EBITDA
8.76 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Darden Restaurants Inc's enterprise value is $8,004 Mil. Darden Restaurants Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2016 was $914 Mil. Therefore, Darden Restaurants Inc's EV/EBITDA ratio for today is 8.76.

DRI' s EV/EBITDA Range Over the Past 10 Years
Min: 4.4   Max: 21.9
Current: 8.75

4.4
21.9

During the past 13 years, the highest EV/EBITDA Ratio of Darden Restaurants Inc was 21.90. The lowest was 4.40. And the median was 8.00.

DRI's EV/EBITDA is ranked higher than
72% of the 263 Companies
in the Global Restaurants industry.

( Industry Median: 13.15 vs. DRI: 8.75 )

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, Darden Restaurants Inc's stock price is $62.11. Darden Restaurants Inc's earnings per share for the trailing twelve months (TTM) ended in May. 2016 was $2.90. Therefore, Darden Restaurants Inc's P/E Ratio for today is 21.42.

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


Definition

Darden Restaurants Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8004.454/913.5
=8.76

Darden Restaurants Inc's current Enterprise Value is $8,004 Mil.
Darden Restaurants Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 215.3 (Aug. 2015 ) + 157 (Nov. 2015 ) + 288.2 (Feb. 2016 ) + 253 (May. 2016 ) = $914 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.

Darden Restaurants Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=62.11/2.9
=21.42

Darden Restaurants Inc's share price for today is $62.11.
Darden Restaurants Inc's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2016 was 0.67 (Aug. 2015 ) + 0.33 (Nov. 2015 ) + 0.82 (Feb. 2016 ) + 1.08 (May. 2016 ) = $2.90.

* 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.

Darden Restaurants Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
ev2ebitda 8.137.236.977.237.2511.4912.7613.8912.179.55

Darden Restaurants Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
ev2ebitda 21.7113.8911.3614.0213.7712.1711.328.839.339.55
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