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Arch Coal Inc (NYSE:ACI)
EV/EBITDA
-41.18 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Arch Coal Inc's enterprise value is $4,500 Mil. Arch Coal Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $-109 Mil. Therefore, Arch Coal Inc's EV/EBITDA ratio for today is -41.18.

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, Arch Coal Inc's stock price is $1.83. Arch Coal Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $-3.26. Therefore, Arch Coal Inc's P/E Ratio for today is .

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4499.662/-109.261
=-41.18

Arch Coal Inc's current Enterprise Value is $4,500 Mil.
Arch Coal Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was -282.904 (Dec. 2013 ) + 33.144 (Mar. 2014 ) + 68.695 (Jun. 2014 ) + 71.804 (Sep. 2014 ) = $-109 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=1.83/-3.26
=

Arch Coal Inc's share price for today is $1.83.
Arch Coal Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -1.75 (Dec. 2013 ) + -0.59 (Mar. 2014 ) + -0.46 (Jun. 2014 ) + -0.46 (Sep. 2014 ) = $-3.26.

* 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.

Arch Coal Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 8.4820.3510.2016.374.4512.2610.258.10-25.33-19.64

Arch Coal Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 19.9017.19-25.33-14.8423.07-30.05-19.64-17.51-16.18-41.67
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