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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Brown-Forman Corporation's enterprise value is $19,684 Mil. Brown-Forman Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $1,014 Mil. Therefore, Brown-Forman Corporation's EV/EBITDA ratio for today is 19.33.

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 Corporation's stock price is $88.92. Brown-Forman Corporation's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.97. Therefore, Brown-Forman Corporation's P/E Ratio for today is 29.70.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=19684.348/1014
=19.41

Brown-Forman Corporation's current Enterprise Value is $19,684 Mil.
Brown-Forman Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 193 (Apr. 2013 ) + 230 (Jul. 2013 ) + 324 (Oct. 2013 ) + 267 (Jan. 2014 ) = $1,014 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 Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=88.92/2.965
=29.99

Brown-Forman Corporation's share price for today is $88.92.
Brown-Forman Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.525 (Apr. 2013 ) + 0.66 (Jul. 2013 ) + 0.96 (Oct. 2013 ) + 0.82 (Jan. 2014 ) = $2.97.

* 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 Corporation Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
ev2ebitda 18.3312.6914.8813.6112.5611.0512.0311.3214.5116.69

Brown-Forman Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 11.4512.6314.5114.9714.8416.1716.6917.4816.2716.91
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