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Avery Dennison Corp (NYSE:AVY)
EV/EBITDA
8.50 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Avery Dennison Corp's enterprise value is $5,318 Mil. Avery Dennison Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $635 Mil. Therefore, Avery Dennison Corp's EV/EBITDA ratio for today is 8.50.

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, Avery Dennison Corp's stock price is $48.03. Avery Dennison Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $2.31. Therefore, Avery Dennison Corp's P/E Ratio for today is 20.70.

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


Definition

Avery Dennison Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5318.022/635.1
=8.37

Avery Dennison Corp's current Enterprise Value is $5,318 Mil.
Avery Dennison Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 176.1 (Jun. 2013 ) + 143.2 (Sep. 2013 ) + 162.6 (Dec. 2013 ) + 153.2 (Mar. 2014 ) = $635 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.

Avery Dennison Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=48.03/2.314
=20.76

Avery Dennison Corp's share price for today is $48.03.
Avery Dennison Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.68 (Jun. 2013 ) + 0.47 (Sep. 2013 ) + 0.434 (Dec. 2013 ) + 0.73 (Mar. 2014 ) = $2.31.

* 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.

Avery Dennison Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 12.4611.3112.2810.978.409.1010.387.368.158.69

Avery Dennison Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 7.737.558.138.159.929.298.218.698.830.00
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