Switch to:
Applied Materials Inc (NAS:AMAT)
EV/EBITDA
13.72 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Applied Materials Inc's enterprise value is $23,529 Mil. Applied Materials Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2014 was $1,719 Mil. Therefore, Applied Materials Inc's EV/EBITDA ratio for today is 13.72.

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, Applied Materials Inc's stock price is $20.07. Applied Materials Inc's earnings per share for the trailing twelve months (TTM) ended in Jul. 2014 was $0.81. Therefore, Applied Materials Inc's P/E Ratio for today is 24.80.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=23529.200/1719
=13.69

Applied Materials Inc's current Enterprise Value is $23,529 Mil.
Applied Materials Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2014 was 316 (Oct. 2013 ) + 434 (Jan. 2014 ) + 482 (Apr. 2014 ) + 487 (Jul. 2014 ) = $1,719 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=20.07/0.81
=24.78

Applied Materials Inc's share price for today is $20.07.
Applied Materials Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jul. 2014 was 0.15 (Oct. 2013 ) + 0.21 (Jan. 2014 ) + 0.21 (Apr. 2014 ) + 0.24 (Jul. 2014 ) = $0.81.

* 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.

Applied Materials Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 9.3412.179.198.998.720.008.194.4015.2625.18

Applied Materials Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ev2ebitda 7.607.9415.2622.9085.08154.2925.1817.4714.1714.53
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