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Brown-Forman Corp (NYSE:BF.B)
EV/EBITDA
18.98 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brown-Forman Corp's enterprise value is $19,321 Mil. Brown-Forman Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $1,018 Mil. Therefore, Brown-Forman Corp's EV/EBITDA ratio for today is 18.98.

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, Brown-Forman Corp's stock price is $87.19. Brown-Forman Corp's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $3.11. Therefore, Brown-Forman Corp's P/E Ratio for today is 28.04.

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


Definition

Brown-Forman Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=19321.000/1018
=18.98

Brown-Forman Corp's current Enterprise Value is $19,321 Mil.
Brown-Forman Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 267 (Jan. 2014 ) + 202 (Apr. 2014 ) + 234 (Jul. 2014 ) + 315 (Oct. 2014 ) = $1,018 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.

Brown-Forman Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=87.19/3.109
=28.04

Brown-Forman Corp's share price for today is $87.19.
Brown-Forman Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.82 (Jan. 2014 ) + 0.619 (Apr. 2014 ) + 0.7 (Jul. 2014 ) + 0.97 (Oct. 2014 ) = $3.11.

* 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.

Brown-Forman Corp Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev2ebitda 12.6914.8813.6112.5611.0512.0311.3214.5116.6919.15

Brown-Forman Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 14.9714.8416.1816.6917.4816.2316.9119.1518.7219.64
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