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Avery Dennison Corp (NYSE:AVY)
EV/EBITDA
8.79 (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 $5,484 Mil. Avery Dennison Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $624 Mil. Therefore, Avery Dennison Corp's EV/EBITDA ratio for today is 8.79.

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 $51.97. Avery Dennison Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.28. Therefore, Avery Dennison Corp's P/E Ratio for today is 22.75.

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)
=5483.900/623.6
=8.79

Avery Dennison Corp's current Enterprise Value is $5,484 Mil.
Avery Dennison Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 162.6 (Dec. 2013 ) + 153.2 (Mar. 2014 ) + 142.1 (Jun. 2014 ) + 165.7 (Sep. 2014 ) = $624 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)
=51.97/2.284
=22.75

Avery Dennison Corp's share price for today is $51.97.
Avery Dennison Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.434 (Dec. 2013 ) + 0.73 (Mar. 2014 ) + 0.44 (Jun. 2014 ) + 0.68 (Sep. 2014 ) = $2.28.

* 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 12.4611.3112.2810.978.40-12.1610.117.368.438.66

Avery Dennison Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 7.638.298.4310.199.488.328.668.819.267.94
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