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Avery Dennison Corp (NYSE:AVY)
EV/EBITDA
8.84 (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 $5,564 Mil. Avery Dennison Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $629 Mil. Therefore, Avery Dennison Corp's EV/EBITDA ratio for today is 8.84.

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 $53.55. Avery Dennison Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $2.61. Therefore, Avery Dennison Corp's P/E Ratio for today is 20.50.

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)
=5564.200/629.3
=8.84

Avery Dennison Corp's current Enterprise Value is $5,564 Mil.
Avery Dennison Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 153.2 (Mar. 2014 ) + 142.1 (Jun. 2014 ) + 165.7 (Sep. 2014 ) + 168.3 (Dec. 2014 ) = $629 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)
=53.55/2.612
=20.50

Avery Dennison Corp's share price for today is $53.55.
Avery Dennison Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.73 (Mar. 2014 ) + 0.44 (Jun. 2014 ) + 0.68 (Sep. 2014 ) + 0.762 (Dec. 2014 ) = $2.61.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 11.3112.2810.978.40-12.1610.117.368.438.668.65

Avery Dennison Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 8.298.4310.199.488.328.668.819.237.828.65
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