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Applied Materials Inc (NAS:AMAT)
EV/EBITDA
13.88 (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 $26,631 Mil. Applied Materials Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $1,918 Mil. Therefore, Applied Materials Inc's EV/EBITDA ratio for today is 13.88.

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 $22.86. Applied Materials Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $0.89. Therefore, Applied Materials Inc's P/E Ratio for today is 25.70.

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)
=26631.402/1918
=13.88

Applied Materials Inc's current Enterprise Value is $26,631 Mil.
Applied Materials Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 434 (Jan. 2014 ) + 482 (Apr. 2014 ) + 487 (Jul. 2014 ) + 515 (Oct. 2014 ) = $1,918 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)
=22.86/0.89
=25.69

Applied Materials Inc's share price for today is $22.86.
Applied Materials Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.21 (Jan. 2014 ) + 0.21 (Apr. 2014 ) + 0.24 (Jul. 2014 ) + 0.23 (Oct. 2014 ) = $0.89.

* 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

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebitda 12.179.198.998.72-82.798.194.4015.2625.2112.92

Applied Materials Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 7.9415.2622.9085.08154.2925.2117.5514.2414.5512.92
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