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Aramark
NYSE:ARMK

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Aramark
NYSE:ARMK
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Price: 46.17 USD 2.03% Market Closed
Market Cap: $12.1B

EV/EBIT

22.6
Current
19%
More Expensive
vs 3-y average of 19

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.

EV/EBIT
22.6
=
Enterprise Value
$16.5B
/
EBIT
$792.1m

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.

EV/EBIT
22.6
=
Enterprise Value
$16.5B
/
EBIT
$792.1m

Valuation Scenarios

Aramark is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (19), the stock would be worth $38.87 (16% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-20%
Maximum Upside
No Upside Scenarios
Average Downside
16%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 22.6 $46.17
0%
3-Year Average 19 $38.87
-16%
5-Year Average 19.6 $40.02
-13%
Industry Average 18.1 $36.9
-20%
Country Average 19.6 $40.07
-13%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$16.5B
/
Jan 2026
$792.1m
=
22.6
Current
$16.5B
/
Sep 2026
$1.1B
=
14.6
Forward
$16.5B
/
Sep 2027
$1.3B
=
13.1
Forward
$16.5B
/
Sep 2028
$1.4B
=
12
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
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
44.2B USD 22 28.8
US
Yum! Brands Inc
NYSE:YUM
44.5B USD 20.9 28.6
CA
Restaurant Brands International Inc
NYSE:QSR
28.1B USD 16.2 36.3
IN
Eternal Ltd
NSE:ETERNAL
2.4T INR -362 1 002.3
US
Darden Restaurants Inc
NYSE:DRI
23.2B USD 18.3 21
CN
Yum China Holdings Inc
NYSE:YUMC
17B USD 11.8 18.3
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Aramark
NYSE:ARMK
Average EV/EBIT: 20.5
22.6
20%
1.1
US
McDonald's Corp
NYSE:MCD
20.5
8%
2.6
US
Starbucks Corp
NASDAQ:SBUX
35.3
17%
2.1
UK
Compass Group PLC
LSE:CPG
17
13%
1.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
22
11%
2
US
Yum! Brands Inc
NYSE:YUM
20.9
9%
2.3
CA
Restaurant Brands International Inc
NYSE:QSR
16.2
8%
2
IN
Eternal Ltd
NSE:ETERNAL
Negative Multiple: -362 N/A N/A
US
Darden Restaurants Inc
NYSE:DRI
18.3
9%
2
CN
Yum China Holdings Inc
NYSE:YUMC
11.8
9%
1.3

Market Distribution

In line with most companies in the United States of America
Percentile
59th
Based on 8 638 companies
59th percentile
22.6
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

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.

ARMK Intrinsic Value
55.21 USD
Undervaluation 16%
Intrinsic Value
Price $46.17
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