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Darden Restaurants Inc (NYSE:DRI)
EV/EBITDA
9.24 (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 $8,998 Mil. Darden Restaurants Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $945 Mil. Therefore, Darden Restaurants Inc's EV/EBITDA ratio for today is 9.24.

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 $48.47. Darden Restaurants Inc's earnings per share for the trailing twelve months (TTM) ended in Feb. 2014 was $2.51. Therefore, Darden Restaurants Inc's P/E Ratio for today is 17.90.

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)
=8997.736/944.6
=9.53

Darden Restaurants Inc's current Enterprise Value is $8,998 Mil.
Darden Restaurants Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 295.9 (May. 2013 ) + 227.2 (Aug. 2013 ) + 158.6 (Nov. 2013 ) + 262.9 (Feb. 2014 ) = $945 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)
=48.47/2.507
=19.33

Darden Restaurants Inc's share price for today is $48.47.
Darden Restaurants Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2014 was 1.007 (May. 2013 ) + 0.53 (Aug. 2013 ) + 0.15 (Nov. 2013 ) + 0.82 (Feb. 2014 ) = $2.51.

* 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

May04May05May06May07May08May09May10May11May12May13
ev2ebitda 7.138.227.849.227.827.557.917.948.018.98

Darden Restaurants Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebitda 8.148.138.017.918.888.138.988.649.870.00
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