Associated British Foods (LSE:ABF) EBIT: £1,610 Mil (TTM As of Feb. 2026)


LSE:ABF Associated British Foods PLC LSE:ABF
83 GF Score
Price £18.85
GF Value £22.57
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Associated British Foods EBIT?

Associated British Foods LSE:ABF +0.21% 83 EBIT is £1,610 Mil as of Feb. 2026. GuruFocus rates LSE:ABF with a GF Score™ of 83/100 and a GF Value™ of £22.57 (Modestly Undervalued). The stock has 2 warning signs investors should review.

Associated British Foods's earnings before interest and taxes (EBIT) for the six months ended in Feb. 2026 was £700 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2026 was £1,610 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Associated British Foods's annualized ROC % for the quarter that ended in Feb. 2026 was 5.49%. Associated British Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 13.25%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Associated British Foods's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 9.83%.

Associated British Foods  (LSE:ABF) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Associated British Foods's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=1258 * ( 1 - 29.75% )/( (16351 + 15815)/ 2 )
=883.745/16083
=5.49 %

where

Invested Capital(Q: Aug. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19291 - 1883 - ( 1057 - max(0, 4035 - 6201+1057))
=16351

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19626 - 3099 - ( 712 - max(0, 3975 - 5990+712))
=15815

Note: The Operating Income data used here is two times the semi-annual (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Associated British Foods's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1400/( ( (8743 + max(1174, 0)) + (9206 + max(2013, 0)) )/ 2 )
=1400/( ( 9917 + 11219 )/ 2 )
=1400/10568
=13.25 %

where Working Capital is:

Working Capital(Q: Aug. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1206 + 3289 + 163) - (1883 + 0 + 1601)
=1174

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1706 + 3420 + 152) - (3099 + 0 + 166)
=2013

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Feb. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Associated British Foods's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Feb. 2026 )
=1610/16373.223
=9.83 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Associated British Foods EBIT Related Terms

Associated British Foods EBIT Historical Data

* Premium members only.

The historical data trend for Associated British Foods's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Associated British Foods EBIT Chart

Associated British Foods Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 905.00 1,260.00 1,590.00 2,183.00 1,666.00

Associated British Foods Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 943.00 1,240.00 756.00 910.00 700.00

LSE:ABF vs KHC, GIS: EBIT Comparison

For the Packaged Foods subindustry, Associated British Foods's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Associated British Foods EV-to-EBIT vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Associated British Foods's EV-to-EBIT falls into.


LSE:ABF
83GF Score
Associated British Foods PLC LSE:ABF
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Associated British Foods EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £1,610 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £1,610 Mil mean?
Associated British Foods (LSE:ABF) has a EBIT of £1,610 Mil as of Feb. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Associated British Foods.
Is Associated British Foods' EBIT too high?
Associated British Foods' current EBIT is £1,610 Mil. Overall, Associated British Foods has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Associated British Foods' EBIT compare to KHC and GIS?
Associated British Foods' EBIT of £1,610 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Consumer Packaged Goods company?
A good EBIT depends on the Consumer Packaged Goods industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Associated British Foods. Associated British Foods's current EBIT is £1,610 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Foods stock overvalued right now?
Based on GuruFocus' analysis, Associated British Foods (LSE:ABF) is currently considered Modestly Undervalued. The stock's GF Value™ is £22.57, compared to a current price of £18.85 — trading 16.5% below its estimated fair value. The current EBIT is £1,610 Mil. Associated British Foods' overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Associated British Foods (LSE:ABF), the current EBIT is £1,610 Mil as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Associated British Foods (LSE:ABF) Overvalued in 2026?

Based on GuruFocus' analysis, Associated British Foods stock appears to be undervalued. The current stock price of £18.85 is trading 16.5% below its estimated GF Value™ of £22.57. GuruFocus considers Associated British Foods to be Modestly Undervalued.

Key valuation signals for LSE:ABF:

  • EBIT: £1,610 Mil
  • GF Value™: £22.57 vs. price of £18.85 (16.5% below fair value)
  • GF Score™: 83/100 with 2 warning signs

No single metric tells the full story. See the LSE:ABF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Associated British Foods Business Description

Address 10 Grosvenor Street, Weston Centre, London, GBR, W1K 4QY
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.
83GF Score

Get the complete analysis for LSE:ABF

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£18.85
Price
£22.57
GF Value