Switch to:
Allergan Inc (NYSE:AGN)
EV/EBITDA
29.02 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Allergan Inc's enterprise value is $61,309 Mil. Allergan Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,113 Mil. Therefore, Allergan Inc's EV/EBITDA ratio for today is 29.02.

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, Allergan Inc's stock price is $212.63. Allergan Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.29. Therefore, Allergan Inc's P/E Ratio for today is 49.59.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=61309.486/2112.9
=29.02

Allergan Inc's current Enterprise Value is $61,309 Mil.
Allergan Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 518.7 (Dec. 2013 ) + 437.9 (Mar. 2014 ) + 654.5 (Jun. 2014 ) + 501.8 (Sep. 2014 ) = $2,113 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=212.63/4.288
=49.59

Allergan Inc's share price for today is $212.63.
Allergan Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.038 (Dec. 2013 ) + 0.85 (Mar. 2014 ) + 1.37 (Jun. 2014 ) + 1.03 (Sep. 2014 ) = $4.29.

* 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.

Allergan Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 16.4019.4291.4120.6911.4415.8040.4015.8914.1415.32

Allergan Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 14.8214.6114.1417.4912.6112.5015.3217.2422.6724.14
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK