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Avago Technologies Ltd (NAS:AVGO)
EV/EBITDA
17.61 (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 $13,707 Mil. Avago Technologies Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $786 Mil. Therefore, Avago Technologies Ltd's EV/EBITDA ratio for today is 17.61.

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 $60.90. Avago Technologies Ltd's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.22. Therefore, Avago Technologies Ltd's P/E Ratio for today is 27.50.

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)
=13707.438/786
=17.44

Avago Technologies Ltd's current Enterprise Value is $13,707 Mil.
Avago Technologies Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 161 (Apr. 2013 ) + 191 (Jul. 2013 ) + 238 (Oct. 2013 ) + 196 (Jan. 2014 ) = $786 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)
=60.90/2.215
=27.49

Avago Technologies Ltd's share price for today is $60.90.
Avago Technologies Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.45 (Apr. 2013 ) + 0.56 (Jul. 2013 ) + 0.675 (Oct. 2013 ) + 0.53 (Jan. 2014 ) = $2.22.

* 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

Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 0.000.000.000.000.0018.199.3410.369.4613.54

Avago Technologies Ltd Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 10.3610.2710.2810.989.4610.389.2611.3813.5415.94
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