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Berkshire Hathaway Inc (NYSE:BRK.B)
EV/EBITDA
8.50 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Berkshire Hathaway Inc's enterprise value is $340,005 Mil. Berkshire Hathaway Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $40,027 Mil. Therefore, Berkshire Hathaway Inc's EV/EBITDA ratio for today is 8.50.

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, Berkshire Hathaway Inc's stock price is $136.47. Berkshire Hathaway Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $9.00. Therefore, Berkshire Hathaway Inc's P/E Ratio for today is 15.10.

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


Definition

Berkshire Hathaway Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=340005.015/40027
=8.49

Berkshire Hathaway Inc's current Enterprise Value is $340,005 Mil.
Berkshire Hathaway Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 8903 (Sep. 2013 ) + 10422 (Dec. 2013 ) + 9152 (Mar. 2014 ) + 11550 (Jun. 2014 ) = $40,027 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.

Berkshire Hathaway Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=136.47/9.002
=15.16

Berkshire Hathaway Inc's share price for today is $136.47.
Berkshire Hathaway Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 2.152 (Sep. 2013 ) + 2.125 (Dec. 2013 ) + 2.003 (Mar. 2014 ) + 2.722 (Jun. 2014 ) = $9.00.

* 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.

Berkshire Hathaway Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 7.576.887.428.2312.809.438.269.117.617.97

Berkshire Hathaway Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 8.588.828.167.618.018.268.017.978.477.97
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