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GuruFocus has detected 4 Warning Signs with McCormick & Co Inc $MKC.
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McCormick & Co Inc (NYSE:MKC)
EV-to-EBIT
21.67 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, McCormick & Co Inc's enterprise value is $14,073 Mil. McCormick & Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $649 Mil. Therefore, McCormick & Co Inc's EV/EBIT ratio for today is 21.67.

MKC' s EV-to-EBIT Range Over the Past 10 Years
Min: 12   Max: 25
Current: 21.67

12
25

During the past 13 years, the highest EV/EBIT Ratio of McCormick & Co Inc was 25.00. The lowest was 12.00. And the median was 17.00.

MKC's EV-to-EBIT is ranked lower than
68% of the 1363 Companies
in the Global Packaged Foods industry.

( Industry Median: 15.50 vs. MKC: 21.67 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). McCormick & Co Inc's enterprise value for the quarter that ended in Feb. 2017 was $13,851 Mil. McCormick & Co Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was $649 Mil. McCormick & Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 was 4.69%.


Definition

McCormick & Co Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=14072.530/649.3
=21.67

McCormick & Co Inc's current Enterprise Value is $14,073 Mil.
McCormick & Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 125.7 (May. 2016 ) + 168 (Aug. 2016 ) + 221.3 (Nov. 2016 ) + 134.3 (Feb. 2017 ) = $649 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).

McCormick & Co Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Feb. 2017 )=EBIT (TTM)/Enterprise Value (Q: Feb. 2017 )
=649.3/13850.8056
=4.69 %

McCormick & Co Inc's Enterprise Value for the quarter that ended in Feb. 2017 was $13,851 Mil.
McCormick & Co Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2017 was 125.7 (May. 2016 ) + 168 (Aug. 2016 ) + 221.3 (Nov. 2016 ) + 134.3 (Feb. 2017 ) = $649 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.

McCormick & Co Inc Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15Nov16
ev2ebit 15.3212.8612.0613.0814.1716.6518.5117.8322.2719.79

McCormick & Co Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebit 17.8319.0220.5321.5322.2722.5022.6322.5519.7921.33
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