DMIᵀᴹ Index for Food Services

March 17, 2022

 

Summary

Food Service Distributors have a DMI Index in the range of 27.05% to 36.54% with an average of 31.75%. The DMI Index for these companies is based on the valuation of customer and supply chain data.

A higher DMI Index is generally preferable across companies and industries. By way of reference, internet companies have a higher DMI Index because most of their enterprise value is derived from data. For example, Google’s DMI Index is 93 percent.

 

Definitions

  • DMI Index = Data Valuation / Enterprise Value
  • Data Valuation = Supply Chain Data Valuation + Customer Data Valuation
  • Enterprise Value =  Equity Value + Long Term Debt – Cash, a key metric used in the investment community

 

Methodology

The YDC team recently published a DMI Index for major Food Service Distributors in the United States. Here is an example for Gordon Food Service along with a benchmark that includes other companies in the industry.

The data valuation is based on research that indicates that better supply chain visibility can improve revenues by 11.7%. The customer data valuation for food service distributors is based on comparable companies and publicly-available data sources. The total value of data will likely be higher once additional datasets relating to product, employees and real estate are included.

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