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GuruFocus has detected 2 Warning Signs with Bed Bath & Beyond Inc $BBBY.
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Bed Bath & Beyond Inc (NAS:BBBY)
EV/EBITDA
4.73 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Bed Bath & Beyond Inc's enterprise value is $7,098 Mil. Bed Bath & Beyond Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2016 was $1,499 Mil. Therefore, Bed Bath & Beyond Inc's EV/EBITDA ratio for today is 4.73.

BBBY' s EV/EBITDA Range Over the Past 10 Years
Min: 4.4   Max: 11.5
Current: 4.73

4.4
11.5

During the past 13 years, the highest EV/EBITDA Ratio of Bed Bath & Beyond Inc was 11.50. The lowest was 4.40. And the median was 7.65.

BBBY's EV/EBITDA is ranked higher than
89% of the 757 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.72 vs. BBBY: 4.73 )

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, Bed Bath & Beyond Inc's stock price is $40.89. Bed Bath & Beyond Inc's earnings per share for the trailing twelve months (TTM) ended in Nov. 2016 was $4.64. Therefore, Bed Bath & Beyond Inc's P/E Ratio for today is 8.81.

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


Definition

Bed Bath & Beyond Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7097.533/1499.342
=4.73

Bed Bath & Beyond Inc's current Enterprise Value is $7,098 Mil.
Bed Bath & Beyond Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2016 was 578.896 (Feb. 2016 ) + 283.471 (May. 2016 ) + 351.821 (Aug. 2016 ) + 285.154 (Nov. 2016 ) = $1,499 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Bed Bath & Beyond Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=40.89/4.64
=8.81

Bed Bath & Beyond Inc's share price for today is $40.89.
Bed Bath & Beyond Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Nov. 2016 was 1.88 (Feb. 2016 ) + 0.8 (May. 2016 ) + 1.11 (Aug. 2016 ) + 0.85 (Nov. 2016 ) = $4.64.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Bed Bath & Beyond Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev2ebitda 10.467.135.728.087.027.036.307.137.544.98

Bed Bath & Beyond Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ev2ebitda 6.727.807.547.366.365.834.984.795.065.17
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