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Applied Materials, Inc. (NAS:AMAT)
EV/EBITDA
19.86 (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 $22,655 Mil. Applied Materials, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $1,141 Mil. Therefore, Applied Materials, Inc.'s EV/EBITDA ratio for today is 19.86.

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 $18.99. Applied Materials, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $0.39. Therefore, Applied Materials, Inc.'s P/E Ratio for today is 48.70.

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)
=22655.186/1141
=19.86

Applied Materials, Inc.'s current Enterprise Value is $22,655 Mil.
Applied Materials, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 40 (Apr. 2013 ) + 351 (Jul. 2013 ) + 316 (Oct. 2013 ) + 434 (Jan. 2014 ) = $1,141 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)
=18.99/0.39
=48.69

Applied Materials, Inc.'s share price for today is $18.99.
Applied Materials, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was -0.11 (Apr. 2013 ) + 0.14 (Jul. 2013 ) + 0.15 (Oct. 2013 ) + 0.21 (Jan. 2014 ) = $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.

Applied Materials, Inc. Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 9.3412.179.198.998.720.008.194.4015.2625.18

Applied Materials, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 4.407.097.607.9415.2622.9085.08154.2925.1817.47
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