Switch to:
A O Smith Corp (NYSE:AOS)
EV/EBITDA
13.68 (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 $4,607 Mil. A O Smith Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $337 Mil. Therefore, A O Smith Corp's EV/EBITDA ratio for today is 13.68.

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 $54.46. A O Smith Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.16. Therefore, A O Smith Corp's P/E Ratio for today is 25.20.

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)
=4607.472/336.9
=13.68

A O Smith Corp's current Enterprise Value is $4,607 Mil.
A O Smith Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 75.4 (Dec. 2013 ) + 81.1 (Mar. 2014 ) + 94.8 (Jun. 2014 ) + 85.6 (Sep. 2014 ) = $337 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)
=54.46/2.161
=25.20

A O Smith Corp's share price for today is $54.46.
A O Smith Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.461 (Dec. 2013 ) + 0.51 (Mar. 2014 ) + 0.63 (Jun. 2014 ) + 0.56 (Sep. 2014 ) = $2.16.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.908.938.207.426.149.1015.467.699.0615.33

A O Smith Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 8.078.969.0611.5710.8713.3615.3313.3513.6012.80
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