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Avago Technologies Ltd (NAS:AVGO)
EV/EBITDA
27.14 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Avago Technologies Ltd's enterprise value is $29,233 Mil. Avago Technologies Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $1,077 Mil. Therefore, Avago Technologies Ltd's EV/EBITDA ratio for today is 27.14.

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, Avago Technologies Ltd's stock price is $100.15. Avago Technologies Ltd's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $0.99. Therefore, Avago Technologies Ltd's P/E Ratio for today is 101.16.

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


Definition

Avago Technologies Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=29232.855/1077
=27.14

Avago Technologies Ltd's current Enterprise Value is $29,233 Mil.
Avago Technologies Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 196 (Jan. 2014 ) + 221 (Apr. 2014 ) + 93 (Jul. 2014 ) + 567 (Oct. 2014 ) = $1,077 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.

Avago Technologies Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=100.15/0.99
=101.16

Avago Technologies Ltd's share price for today is $100.15.
Avago Technologies Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.53 (Jan. 2014 ) + 0.61 (Apr. 2014 ) + -0.65 (Jul. 2014 ) + 0.5 (Oct. 2014 ) = $0.99.

* 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.

Avago Technologies Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebitda 0.000.000.000.0018.199.3410.369.4813.5922.96

Avago Technologies Ltd Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 10.989.4810.349.2311.3613.5915.9417.3529.4922.96
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