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General Mills Inc. (GIS)


Enterprise Value to EBITDA (EV/EBITDA)

Difficulty: Intermediate


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

General Mills Inc., EBITDA calculation

US$ in thousands

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12 months ended May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Net earnings attributable to General Mills 1,752,700  2,131,000  1,657,500  1,697,400  1,221,300  1,824,400 
Add: Net income attributable to noncontrolling interest 33,500  32,000  43,600  39,400  38,100  36,900 
Add: Income tax expense 367,800  57,300  655,200  755,200  586,800  883,300 
Earnings before tax (EBT) 2,154,000  2,220,300  2,356,300  2,492,000  1,846,200  2,744,600 
Add: Interest expense, net of capitalized interest 527,400  385,400  302,100  311,900  328,600  318,500 
Earnings before interest and tax (EBIT) 2,681,400  2,605,700  2,658,400  2,803,900  2,174,800  3,063,100 
Add: Depreciation and amortization 620,100  618,800  603,600  608,100  588,300  585,400 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,301,500  3,224,500  3,262,000  3,412,000  2,763,100  3,648,500 

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

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. General Mills Inc.’s EBITDA declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Enterprise Value to EBITDA Ratio, Current

General Mills Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 46,361,894 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,301,500 
Valuation Ratio
EV/EBITDA 14.04
Benchmarks
EV/EBITDA, Competitors1
Kraft Heinz Co.
Mondelēz International Inc. 17.67
EV/EBITDA, Sector
Food Producers
EV/EBITDA, Industry
Consumer Goods 15.91

Based on: 10-K (filing date: 2019-06-28).

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.


Enterprise Value to EBITDA Ratio, Historical

General Mills Inc., historical EV/EBITDA calculation, comparison to benchmarks

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May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 45,968,119  42,033,361  40,796,369  50,623,631  43,168,268  40,882,674 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,301,500  3,224,500  3,262,000  3,412,000  2,763,100  3,648,500 
Valuation Ratio
EV/EBITDA3 13.92 13.04 12.51 14.84 15.62 11.21
Benchmarks
EV/EBITDA, Competitors4
Kraft Heinz Co. 14.92 18.89 37.29
Mondelēz International Inc. 15.64 16.47 27.04 8.10 17.34
EV/EBITDA, Sector
Food Producers 14.90 19.72 15.36 14.56
EV/EBITDA, Industry
Consumer Goods 14.14 12.40 11.91 12.72 13.08

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 45,968,119 ÷ 3,301,500 = 13.92

4 Click competitor name to see calculations.

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. General Mills Inc.’s EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019.