Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Diageo PLC, EBITDA calculation

US$ in millions, translated from GBP £

12 months ended:	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Profit for the year attributable to equity shareholders of the parent company	3,797)	4,118)	3,158)	2,952)	2,507)	2,621)
Add: Net income attributable to noncontrolling interest	(113)	181)	211)	182)	175)	168)
Less: Discontinued operations	(140)	—)	(18)	—)	(29)	3)
Add: Income tax expense	755)	877)	1,688)	533)	734)	472)
Earnings before tax (EBT)	4,579)	5,176)	5,076)	3,667)	3,446)	3,258)
Add: Interest charges	966)	1,082)	1,047)	1,005)	1,299)	1,242)
Earnings before interest and tax (EBIT)	5,545)	6,258)	6,123)	4,672)	4,745)	4,500)
Add: Depreciation, amortization and impairment	1,062)	668)	668)	547)	573)	446)
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,607)	6,926)	6,791)	5,219)	5,318)	4,946)

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Diageo PLC EBITDA increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

Diageo PLC, current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions, translated from GBP £)
Enterprise value (EV)	96,539)
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,607)
Valuation Ratio
EV/EBITDA	14.61
Benchmarks
EV/EBITDA, Competitors¹
Altria Group Inc.	7.86
Coca-Cola Co.	18.98
Mondelēz International Inc.	13.63
PepsiCo Inc.	17.44

Based on: 20-F (reporting date: 2014-06-30).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Diageo PLC, historical EV/EBITDA calculation, comparison to benchmarks

	Jun 30, 2014	Jun 30, 2013	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009
Selected Financial Data (US$ in millions, translated from GBP £)
Enterprise value (EV)¹	96,539)	104,432)	90,596)	63,844)	59,214)	57,902)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	6,607)	6,926)	6,791)	5,219)	5,318)	4,946)
Valuation Ratio
EV/EBITDA³	14.61	15.08	13.34	12.23	11.13	11.71
Benchmarks
EV/EBITDA, Competitors⁴
Altria Group Inc.	—	—	—	—	—	—
Coca-Cola Co.	—	—	—	—	—	—
Mondelēz International Inc.	—	—	—	—	—	—
PepsiCo Inc.	—	—	—	—	—	—

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

¹ See details »

² See details »

³ 2014 Calculation
EV/EBITDA = EV ÷ EBITDA
= 96,539 ÷ 6,607 = 14.61

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	Diageo PLC EV/EBITDA ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.

Diageo PLC (NYSE:DEO)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical