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Best Buy Co Inc (NYSE:BBY)
EV/EBITDA
3.81 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Best Buy Co Inc's enterprise value is $7,252 Mil. Best Buy Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $1,903 Mil. Therefore, Best Buy Co Inc's EV/EBITDA ratio for today is 3.81.

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, Best Buy Co Inc's stock price is $24.48. Best Buy Co Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $1.52. Therefore, Best Buy Co Inc's P/E Ratio for today is 16.10.

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


Definition

Best Buy Co Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7251.628/1903
=3.81

Best Buy Co Inc's current Enterprise Value is $7,252 Mil.
Best Buy Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 383 (Apr. 2013 ) + 609 (Jul. 2013 ) + 266 (Oct. 2013 ) + 645 (Jan. 2014 ) = $1,903 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.

Best Buy Co Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=24.48/1.517
=16.14

Best Buy Co Inc's share price for today is $24.48.
Best Buy Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was -0.24 (Apr. 2013 ) + 0.77 (Jul. 2013 ) + 0.16 (Oct. 2013 ) + 0.827 (Jan. 2014 ) = $1.52.

* 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.

Best Buy Co Inc Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14
ev2ebitda 9.297.9810.937.265.955.404.924.104.743.64

Best Buy Co Inc Quarterly Data

Aug11Nov11Feb12Apr12Jul12Oct12Apr13Jul13Oct13Jan14
ev2ebitda 3.253.684.744.214.534.6811.568.1811.223.64
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