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Ashland Inc (NYSE:ASH)
EV/EBITDA
8.14 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Ashland Inc's enterprise value is $11,015 Mil. Ashland Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $1,389 Mil. Therefore, Ashland Inc's EV/EBITDA ratio for today is 8.14.

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, Ashland Inc's stock price is $104.65. Ashland Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $7.44. Therefore, Ashland Inc's P/E Ratio for today is 14.00.

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


Definition

Ashland Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11014.531/1389
=7.93

Ashland Inc's current Enterprise Value is $11,015 Mil.
Ashland Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 344 (Jun. 2013 ) + 742 (Sep. 2013 ) + 288 (Dec. 2013 ) + 15 (Mar. 2014 ) = $1,389 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.

Ashland Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=104.65/7.443
=14.06

Ashland Inc's share price for today is $104.65.
Ashland Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.55 (Jun. 2013 ) + 5.063 (Sep. 2013 ) + 1.4 (Dec. 2013 ) + -0.57 (Mar. 2014 ) = $7.44.

* 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.

Ashland Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev2ebitda 7.391.407.136.932.867.318.4615.1713.086.19

Ashland Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 16.7818.5614.0913.0813.3613.1814.836.196.437.64
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