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Diageo PLC (DEO) | Enterprise Value to EBITDA (EV/EBITDA)

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

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Diageo PLC, EBITDA calculation

USD $ in millions, translated from GBP £

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  12 months ended Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
chart Profit for the year attributable to equity shareholders of the parent company
chart Add: Profit for the year attributable to non-controlling interests
chart Add: Interest payable
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
chart Add: Depreciation, amortization and impairment
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
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's EBITDA increased from 2009 to 2010 but then slightly declined from 2010 to 2011.

EV to EBITDA Ratio, Current

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Diageo PLC, current EV/EBITDA

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  Diageo PLC Consumer Goods
Selected Financial Data (USD $ in millions)
Enterprise value (EV)  
Earnings before interest, tax, depreciation and amortization (EBITDA)  
Ratio
EV/EBITDA

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

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

EV to EBITDA Ratio, Historical

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Diageo PLC, EV/EBITDA calculation

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    Jun 30, 2011 Jun 30, 2010 Jun 30, 2009 Jun 30, 2008 Jun 30, 2007 Jun 30, 2006
  Selected Financial Data (USD $ in millions, translated from GBP £)
chart Enterprise value (EV)
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
  EV/EBITDA, Comparison to Industry
chart Diageo PLC1
  Industry, Consumer Goods

2011 Calculations

1 EV/EBITDA = EV ÷ EBITDA
= ÷ =

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Diageo PLC's EV/EBITDA ratio declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.

May 23, 2012

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