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Best Buy Co Inc (NYSE:BBY)
EV/EBITDA
3.50 (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 $8,157 Mil. Best Buy Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2016 was $2,331 Mil. Therefore, Best Buy Co Inc's EV/EBITDA ratio for today is 3.50.

BBY' s EV/EBITDA Range Over the Past 10 Years
Min: 2.3   Max: 12.4
Current: 3.51

2.3
12.4

During the past 13 years, the highest EV/EBITDA Ratio of Best Buy Co Inc was 12.40. The lowest was 2.30. And the median was 5.60.

BBY's EV/EBITDA is ranked higher than
92% of the 769 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.53 vs. BBY: 3.51 )

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 $30.60. Best Buy Co Inc's earnings per share for the trailing twelve months (TTM) ended in Apr. 2016 was $2.92. Therefore, Best Buy Co Inc's P/E Ratio for today is 10.48.

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)
=8156.960/2331
=3.50

Best Buy Co Inc's current Enterprise Value is $8,157 Mil.
Best Buy Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2016 was 455 (Jul. 2015 ) + 401 (Oct. 2015 ) + 933 (Jan. 2016 ) + 542 (Apr. 2016 ) = $2,331 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)
=30.60/2.92
=10.48

Best Buy Co Inc's share price for today is $30.60.
Best Buy Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Apr. 2016 was 0.46 (Jul. 2015 ) + 0.36 (Oct. 2015 ) + 1.4 (Jan. 2016 ) + 0.7 (Apr. 2016 ) = $2.92.

* 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14Jan15Jan16
ev2ebitda 10.927.295.935.404.734.103.123.644.743.66

Best Buy Co Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ev2ebitda 3.644.015.355.834.744.994.444.743.663.73
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