Aramark
NYSE:ARMK
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (19), the stock would be worth $38.87 (16% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 22.6 | $46.17 |
0%
|
| 3-Year Average | 19 | $38.87 |
-16%
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| 5-Year Average | 19.6 | $40.02 |
-13%
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| Industry Average | 18.1 | $36.9 |
-20%
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| Country Average | 19.6 | $40.07 |
-13%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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$16.5B
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/ |
Jan 2026
$792.1m
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= |
|
|
$16.5B
|
/ |
Sep 2026
$1.1B
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= |
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$16.5B
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/ |
Sep 2027
$1.3B
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= |
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$16.5B
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/ |
Sep 2028
$1.4B
|
= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Aramark
NYSE:ARMK
|
12.1B USD | 22.6 | 38.3 | |
| US |
|
McDonald's Corp
NYSE:MCD
|
215.4B USD | 20.5 | 25.2 | |
| US |
|
Starbucks Corp
NASDAQ:SBUX
|
113.4B USD | 35.3 | 82.8 | |
| UK |
|
Compass Group PLC
LSE:CPG
|
47.2B GBP | 17 | 0.3 | |
| US |
|
Chipotle Mexican Grill Inc
NYSE:CMG
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44.2B USD | 22 | 28.8 | |
| US |
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Yum! Brands Inc
NYSE:YUM
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44.5B USD | 20.9 | 28.6 | |
| CA |
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Restaurant Brands International Inc
NYSE:QSR
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28.1B USD | 16.2 | 36.3 | |
| IN |
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Eternal Ltd
NSE:ETERNAL
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2.4T INR | -362 | 1 002.3 | |
| US |
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Darden Restaurants Inc
NYSE:DRI
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23.2B USD | 18.3 | 21 | |
| CN |
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Yum China Holdings Inc
NYSE:YUMC
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17B USD | 11.8 | 18.3 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Aramark
Glance View
Aramark, a name synonymous with service excellence, has carved a niche for itself in the competitive world of food, facilities, and uniform services. Originating from humble beginnings in the 1930s, the company has grown into a global giant by maintaining an unwavering focus on customer satisfaction and diverse service solutions. Aramark works with businesses, schools, hospitals, and leisure venues, tailoring its offerings to meet the unique needs of each sector. Whether it's managing high-volume dining operations at educational institutions, providing essential cleaning services at healthcare facilities, or offering uniform rentals and cleaning for industries, Aramark's multifaceted approach ensures a consistent stream of revenue. By emphasizing sustainability and innovation, the company continuously adapts its services to meet emerging trends and client demands. Beyond the mechanics of its core services, Aramark's business model thrives on its ability to form enduring partnerships with clients. Its collaborative approach involves understanding the specific challenges of each client and developing customized solutions that drive efficiency and enhance experience. This emphasis on partnership extends to its workforce, where a focus on training and development enhances service delivery and strengthens loyalty. The firm's financial health is buoyed by long-term contracts, which provide stability and predictability in cash flow. Moreover, Aramark's strategic acquisitions and global expansions have ensured a vast market presence, allowing it to tap into new opportunities and diversify its revenue base. This strategic focus on building strong relationships and continuously evolving to meet client needs is the cornerstone of Aramark's enduring success.