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GuruFocus has detected 2 Warning Signs with Starbucks Corp $FRA:SRB.
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Starbucks Corp (FRA:SRB)
EV-to-EBIT
20.10 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Starbucks Corp's enterprise value is €79,716 Mil. Starbucks Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was €3,965 Mil. Therefore, Starbucks Corp's EV/EBIT ratio for today is 20.10.

FRA:SRB' s EV-to-EBIT Range Over the Past 10 Years
Min: -303.4   Max: 16209.8
Current: 19.93

-303.4
16209.8

During the past 13 years, the highest EV/EBIT Ratio of Starbucks Corp was 16209.80. The lowest was -303.40. And the median was 19.60.

FRA:SRB's EV-to-EBIT is ranked higher than
98% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 16.92 vs. FRA:SRB: 19.93 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Starbucks Corp's enterprise value for the quarter that ended in Dec. 2016 was €78,701 Mil. Starbucks Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was €3,965 Mil. Starbucks Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 5.04%.


Definition

Starbucks Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=79715.630/3965.07345611
=20.10

Starbucks Corp's current Enterprise Value is €79,716 Mil.
Starbucks Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 789.0625 (Mar. 2016 ) + 974.724101104 (Jun. 2016 ) + 1104.78481689 (Sep. 2016 ) + 1096.50203811 (Dec. 2016 ) = €3,965 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).

Starbucks Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=3965.07345611/78700.7013325
=5.04 %

Starbucks Corp's Enterprise Value for the quarter that ended in Dec. 2016 was €78,701 Mil.
Starbucks Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 789.0625 (Mar. 2016 ) + 974.724101104 (Jun. 2016 ) + 1104.78481689 (Sep. 2016 ) + 1096.50203811 (Dec. 2016 ) = €3,965 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.

Starbucks Corp Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebit 18.8020.5225.4512.3114.1817.46-281.8017.6121.4318.79

Starbucks Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebit 16.7318.6420.1721.4323.9523.2821.5118.7918.7419.16
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