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AutoZone Inc (NYSE:AZO)
EV/EBITDA
10.14 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, AutoZone Inc's enterprise value is $20,744 Mil. AutoZone Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $2,081 Mil. Therefore, AutoZone Inc's EV/EBITDA ratio for today is 10.14.

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, AutoZone Inc's stock price is $506.47. AutoZone Inc's earnings per share for the trailing twelve months (TTM) ended in May. 2014 was $30.90. Therefore, AutoZone Inc's P/E Ratio for today is 16.40.

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


Definition

AutoZone Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=20744.058/2081.453
=9.97

AutoZone Inc's current Enterprise Value is $20,744 Mil.
AutoZone Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 709.145 (Aug. 2013 ) + 439.498 (Nov. 2013 ) + 395.726 (Feb. 2014 ) + 537.084 (May. 2014 ) = $2,081 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.

AutoZone Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=506.47/30.896
=16.39

AutoZone Inc's share price for today is $506.47.
AutoZone Inc's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2014 was 10.516 (Aug. 2013 ) + 6.29 (Nov. 2013 ) + 5.63 (Feb. 2014 ) + 8.46 (May. 2014 ) = $30.90.

* 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.

AutoZone Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev2ebitda 6.948.117.117.998.247.448.079.209.269.21

AutoZone Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebitda 10.1910.019.269.499.329.569.219.7410.7810.38
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