Discovery (JSE:DSY) EV-to-EBIT: 8.05 (As of Sep. 04, 2026) — 27% Below Median

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JSE:DSY Discovery Ltd JSE:DSY
86 GF Score
Price R259.70
GF Value R277.02
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Discovery EV-to-EBIT?

Discovery JSE:DSY +2.86% 86 EV-to-EBIT is 8.05 as of Sep. 04, 2026, which is 27% below its 10-year median of 11.04. GuruFocus rates JSE:DSY with a GF Score™ of 86/100 and a GF Value™ of R277.02 (Fairly Valued). The stock has 2 warning signs investors should review. Among 341 Insurance companies, Discovery ranks worse than 52.2% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Discovery's Enterprise Value is R173,294 Mil. Discovery's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was R21,528 Mil. Therefore, Discovery's EV-to-EBIT for today is 8.05.

The historical rank and industry rank for Discovery's EV-to-EBIT or its related term are showing as below:

JSE:DSY' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.43   Med: 11.04   Max: 43.58
Current: 9.25

During the past 13 years, the highest EV-to-EBIT of Discovery was 43.58. The lowest was 5.43. And the median was 11.04.

JSE:DSY's EV-to-EBIT is ranked worse than
52.2% of 341 companies
in the Insurance industry
Industry Median: 8.91 vs JSE:DSY: 9.25

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Discovery's Enterprise Value for the quarter that ended in Jun. 2026 was R176,174 Mil. Discovery's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was R21,528 Mil. Discovery's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 12.22%.


Discovery  (JSE:DSY) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Discovery's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Jun. 2026 ) =EBIT / Enterprise Value (Q: Jun. 2026 )
=21528/176174.20249
=12.22 %

Discovery's Enterprise Value for the quarter that ended in Jun. 2026 was R176,174 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Discovery's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was R21,528 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.


Discovery EV-to-EBIT Related Terms


Discovery EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Discovery's EV-to-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.

Discovery EV-to-EBIT Chart

Discovery Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.71 8.38 6.96 8.40 8.16

Discovery Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
EV-to-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 6.96 0.00 8.40 0.00 0.00

JSE:DSY vs MET, AFL, PRU: EV-to-EBIT Comparison

For the Insurance - Life subindustry, Discovery'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.


Discovery EV-to-EBIT vs Insurance Industry

For the Insurance industry and Financial Services sector, Discovery's EV-to-EBIT distribution charts can be found below:

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


JSE:DSY
86GF Score
Discovery Ltd JSE:DSY
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Discovery EV-to-EBIT Calculation

Discovery's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=173294.040/21528
=8.05

Discovery's current Enterprise Value is R173,294 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Discovery's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was R21,528 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 EV-to-EBIT →
What does a EV-to-EBIT of 8.05 mean?
Discovery (JSE:DSY) has a EV-to-EBIT of 8.05 as of Sep. 04, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Discovery and its competitors. This is 27% below median its historical median of 11.04. Over the past decade, Discovery's EV-to-EBIT has ranged from 5.43 to 43.58. According to the industry distribution chart, Discovery ranks #178 out of 341 companies in the Insurance industry, placing it in the top 52.2%.
Is Discovery's EV-to-EBIT too high?
Discovery's current EV-to-EBIT of 8.05 is 27% below median its 10-year median of 11.04. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 43.58. The Insurance industry median EV-to-EBIT is 8.91. Discovery's value of 8.05 is 9.7% below this industry median. Based on the distribution chart, Discovery ranks #178 out of 341 companies in the Insurance industry, which is below the industry midpoint. Overall, Discovery has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Discovery's EV-to-EBIT compare to MET and AFL?
According to the Insurance industry distribution chart, Discovery ranks #178 out of 341 companies for EV-to-EBIT. This places Discovery in the lower half of its industry. The industry median EV-to-EBIT is 8.91. Discovery's value of 8.05 is 9.7% below this benchmark. Historically, Discovery's own EV-to-EBIT has ranged from 5.43 to 43.58 over the past decade. While the company's 10-year median is 11.04 vs. the industry median of 8.91, Discovery has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Insurance company?
The median EV-to-EBIT among Insurance companies is 8.91, based on 341 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Discovery's current EV-to-EBIT of 8.05 is 9.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Discovery and its competitors. For the Insurance industry, the median EV-to-EBIT is 8.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Discovery's current EV-to-EBIT is 8.05, which is 27% below median its own 10-year median of 11.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Discovery stock overvalued right now?
Based on GuruFocus' analysis, Discovery (JSE:DSY) is currently considered Fairly Valued. The stock's GF Value™ is R277.02, compared to a current price of R259.70 — trading 6.3% below its estimated fair value. The current EV-to-EBIT is 8.05, which is 27% below median its 10-year median of 11.04 and 9.7% below the Insurance industry median of 8.91. Discovery's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Discovery (JSE:DSY), the current EV-to-EBIT is 8.05 as of Sep. 04, 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 Discovery (JSE:DSY) Overvalued in 2026?

Based on GuruFocus' analysis, Discovery stock appears to be undervalued. The current stock price of R259.70 is trading 6.3% below its estimated GF Value™ of R277.02. GuruFocus considers Discovery to be Fairly Valued.

Key valuation signals for JSE:DSY:

  • EV-to-EBIT: 8.05 (27% below median its 10-year median of 11.04)
  • GF Value™: R277.02 vs. price of R259.70 (6.3% below fair value)
  • GF Score™: 86/100 with 2 warning signs
  • Industry Position: 9.7% below the Insurance median (#178 of 341)

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


Discovery Business Description

Other Exchanges DSBP.PFD:South Africa
Address 1 Discovery Place, Sandton, Johannesburg, GT, ZAF, 2196
Discovery Ltd is a financial services organization. It operates in the healthcare, life insurance, short-term insurance, long-term savings, banking and wellness markets. It specializes in health insurance, life assurance, wellness, investments and savings, short-term insurance, and banking. The company generates revenue through its insurance and financial services, with primary markets in South Africa and the UK, and presence in Canada, the USA, Singapore, Australia, and China.
86GF Score

Get the complete analysis for JSE:DSY

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

R259.70
Price
R277.02
GF Value