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Darden Restaurants EV/EBIT

What is the EV/EBIT of Darden Restaurants?

The EV/EBIT of Darden Restaurants, Inc. is 15.44

What is the definition of EV/EBIT?



Enterprise value to earnings before interest and taxes (EV/EBIT) is a financial ratio used to measure if a stock is priced appropriately to similar stocks and the market. It is similar to the P/E ratio.

ttm (trailing twelve months)

The EV/EBIT ratio addresses some of the shortcomings of the P/E ratio. Instead of taking market capitalization, the ratio uses enterprise value, as it takes into account the true value of the company. Enterprise value includes both equity and debt. It is calculated as:

Enterprise value = market cap + total debt – cash and cash equivalents

The EV/EBIT ratio is useful in comparing peers within the wider market. A high EV/EBIT ratio indicates that a company’s stock is overvalued. On the opposite, a low EV/EBIT ratio indicates that a company’s stock is undervalued. The lower the ratio, the more financially stable a company should be. However, investors and analyst should use other ratios and information to get a full picture of a company’s financial state and actual value.

EV/EBIT of companies in the Consumer Discretionary sector on NYSE compared to Darden Restaurants

What does Darden Restaurants do?

darden is a restaurant company featuring a portfolio of differentiated brands that include olive garden, longhorn steakhouse, cheddar's scratch kitchen, yard house, the capital grille, seasons 52, bahama breeze and eddie v's. our people equal our success, and we are proud to employ 165,000 team members in more than 1,600 restaurants. together, we create memorable experiences for 380 million guests each year in communities across north america.

Companies with ev/ebit similar to Darden Restaurants