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A O Smith Corp (NYSE:AOS)
EV/EBITDA
16.37 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, A O Smith Corp's enterprise value is $6,079 Mil. A O Smith Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $371 Mil. Therefore, A O Smith Corp's EV/EBITDA ratio for today is 16.37.

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, A O Smith Corp's stock price is $71.18. A O Smith Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $2.43. Therefore, A O Smith Corp's P/E Ratio for today is 29.29.

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


Definition

A O Smith Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6078.502/371.4
=16.37

A O Smith Corp's current Enterprise Value is $6,079 Mil.
A O Smith Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 94.8 (Jun. 2014 ) + 85.6 (Sep. 2014 ) + 90.7 (Dec. 2014 ) + 100.3 (Mar. 2015 ) = $371 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.

A O Smith Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=71.18/2.43
=29.29

A O Smith Corp's share price for today is $71.18.
A O Smith Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.63 (Jun. 2014 ) + 0.56 (Sep. 2014 ) + 0.59 (Dec. 2014 ) + 0.65 (Mar. 2015 ) = $2.43.

* 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.

A O Smith Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 8.938.207.426.149.1015.467.699.0615.3313.44

A O Smith Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 9.0611.5710.8713.3615.3313.3513.6512.5813.4415.09
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