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GuruFocus has detected 2 Warning Signs with Dean Foods Co $DF.
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Dean Foods Co (NYSE:DF)
EV-to-EBIT
13.09 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Dean Foods Co's enterprise value is $2,537 Mil. Dean Foods Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $194 Mil. Therefore, Dean Foods Co's EV/EBIT ratio for today is 13.09.

DF' s EV-to-EBIT Range Over the Past 10 Years
Min: -93.2   Max: 309.8
Current: 13.14

-93.2
309.8

During the past 13 years, the highest EV/EBIT Ratio of Dean Foods Co was 309.80. The lowest was -93.20. And the median was 10.00.

DF's EV-to-EBIT is ranked higher than
79% of the 1680 Companies
in the Global Packaged Foods industry.

( Industry Median: 16.43 vs. DF: 13.14 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Dean Foods Co's enterprise value for the quarter that ended in Mar. 2017 was $2,646 Mil. Dean Foods Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was $194 Mil. Dean Foods Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 was 7.32%.


Definition

Dean Foods Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=2536.792/193.818
=13.09

Dean Foods Co's current Enterprise Value is $2,537 Mil.
Dean Foods Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 74.979 (Jun. 2016 ) + 43.188 (Sep. 2016 ) + 71.743 (Dec. 2016 ) + 3.908 (Mar. 2017 ) = $194 Mil.

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


Explanation

This is a more accurate valuation of companies' operation because it consider 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).

Dean Foods Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Mar. 2017 )=EBIT (TTM)/Enterprise Value (Q: Mar. 2017 )
=193.818/2646.4026
=7.32 %

Dean Foods Co's Enterprise Value for the quarter that ended in Mar. 2017 was $2,646 Mil.
Dean Foods Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2017 was 74.979 (Jun. 2016 ) + 43.188 (Sep. 2016 ) + 71.743 (Dec. 2016 ) + 3.908 (Mar. 2017 ) = $194 Mil.

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


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

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

Dean Foods Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 12.919.769.4912.16-2.6411.124.78311.8243.7710.54

Dean Foods Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 311.82-24.01-58.42169.9343.779.949.959.5910.540.00
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