Switch to:
Brown-Forman Corp (NYSE:BF.B)
EV/EBITDA
21.23 (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 $21,999 Mil. Brown-Forman Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2015 was $1,036 Mil. Therefore, Brown-Forman Corp's EV/EBITDA ratio for today is 21.23.

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 $94.35. Brown-Forman Corp's earnings per share for the trailing twelve months (TTM) ended in Jan. 2015 was $3.16. Therefore, Brown-Forman Corp's P/E Ratio for today is 29.87.

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)
=21999.353/1036
=21.23

Brown-Forman Corp's current Enterprise Value is $21,999 Mil.
Brown-Forman Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2015 was 202 (Apr. 2014 ) + 234 (Jul. 2014 ) + 315 (Oct. 2014 ) + 285 (Jan. 2015 ) = $1,036 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)
=94.35/3.159
=29.87

Brown-Forman Corp's share price for today is $94.35.
Brown-Forman Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2015 was 0.619 (Apr. 2014 ) + 0.7 (Jul. 2014 ) + 0.97 (Oct. 2014 ) + 0.87 (Jan. 2015 ) = $3.16.

* 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

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebitda 14.8416.1716.6917.4816.2316.9119.1518.4619.9318.78
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK