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A O Smith Corp (NYSE:AOS)
EV/EBITDA
21.60 (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 $6,497 Mil. A O Smith Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $310 Mil. Therefore, A O Smith Corp's EV/EBITDA ratio for today is 21.60.

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 $47.06. A O Smith Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $1.92. Therefore, A O Smith Corp's P/E Ratio for today is 24.10.

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)
=6497.245/310.2
=20.95

A O Smith Corp's current Enterprise Value is $6,497 Mil.
A O Smith Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 76.8 (Jun. 2013 ) + 76.9 (Sep. 2013 ) + 75.4 (Dec. 2013 ) + 81.1 (Mar. 2014 ) = $310 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)
=47.06/1.919
=24.52

A O Smith Corp's share price for today is $47.06.
A O Smith Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.45 (Jun. 2013 ) + 0.5 (Sep. 2013 ) + 0.461 (Dec. 2013 ) + 0.508 (Mar. 2014 ) = $1.92.

* 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 9.908.938.207.4211.159.9214.307.028.3624.79

A O Smith Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 7.317.478.288.3618.4617.4121.2724.7920.590.00
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