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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-EBITDA
18.88 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, McCormick & Co Inc's enterprise value is $14,346 Mil. McCormick & Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $760 Mil. Therefore, McCormick & Co Inc's EV/EBITDA ratio for today is 18.88.

MKC' s EV-to-EBITDA Range Over the Past 10 Years
Min: 10   Max: 21.3
Current: 18.88

10
21.3

During the past 13 years, the highest EV/EBITDA Ratio of McCormick & Co Inc was 21.30. The lowest was 10.00. And the median was 14.10.

MKC's EV-to-EBITDA is ranked lower than
74% of the 1719 Companies
in the Global Packaged Foods industry.

( Industry Median: 12.42 vs. MKC: 18.88 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, McCormick & Co Inc's stock price is $102.53. McCormick & Co Inc's earnings per share for the trailing twelve months (TTM) ended in Feb. 2017 was $3.70. Therefore, McCormick & Co Inc's P/E Ratio for today is 27.71.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=14345.970/759.9
=18.88

McCormick & Co Inc's current Enterprise Value is $14,346 Mil.
McCormick & Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was 152.3 (May. 2016 ) + 197.3 (Aug. 2016 ) + 247.7 (Nov. 2016 ) + 162.6 (Feb. 2017 ) = $760 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

McCormick & Co Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=102.53/3.7
=27.71

McCormick & Co Inc's share price for today is $102.53.
McCormick & Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2017 was 0.73 (May. 2016 ) + 1 (Aug. 2016 ) + 1.23 (Nov. 2016 ) + 0.74 (Feb. 2017 ) = $3.70.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


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
ev2ebitda 12.4810.5710.0511.0311.9914.1415.5315.2418.6716.94

McCormick & Co Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebitda 15.2416.1717.3518.0618.6719.0219.2619.2416.9418.23
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