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Alcoa Inc (NYSE:AA)
EV/EBITDA
6.97 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Alcoa Inc's enterprise value is $21,927 Mil. Alcoa Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $3,145 Mil. Therefore, Alcoa Inc's EV/EBITDA ratio for today is 6.97.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Alcoa Inc's stock price is $9.87. Alcoa Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $0.39. Therefore, Alcoa Inc's P/E Ratio for today is 25.24.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Alcoa Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=21927.112/3145
=6.97

Alcoa Inc's current Enterprise Value is $21,927 Mil.
Alcoa Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 803 (Sep. 2014 ) + 692 (Dec. 2014 ) + 924 (Mar. 2015 ) + 726 (Jun. 2015 ) = $3,145 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Alcoa Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=9.87/0.391
=25.24

Alcoa Inc's share price for today is $9.87.
Alcoa Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.12 (Sep. 2014 ) + 0.131 (Dec. 2014 ) + 0.14 (Mar. 2015 ) + 0 (Jun. 2015 ) = $0.39.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Alcoa Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 9.206.796.548.9596.1110.786.538.62360.1812.26

Alcoa Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 8.448.357.70360.18-54.18-174.98238.9612.268.360.00
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