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Babcock & Wilcox Co (NYSE:BWC)
EV/EBITDA
5.73 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Babcock & Wilcox Co's enterprise value is $3,038 Mil. Babcock & Wilcox Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $521 Mil. Therefore, Babcock & Wilcox Co's EV/EBITDA ratio for today is 5.73.

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, Babcock & Wilcox Co's stock price is $29.09. Babcock & Wilcox Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.67. Therefore, Babcock & Wilcox Co's P/E Ratio for today is 10.90.

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


Definition

Babcock & Wilcox Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=3037.830/521.294
=5.83

Babcock & Wilcox Co's current Enterprise Value is $3,038 Mil.
Babcock & Wilcox Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 99.553 (Sep. 2013 ) + 295.419 (Dec. 2013 ) + 72.394 (Mar. 2014 ) + 53.928 (Jun. 2014 ) = $521 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.

Babcock & Wilcox Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=29.09/2.674
=10.88

Babcock & Wilcox Co's share price for today is $29.09.
Babcock & Wilcox Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.54 (Sep. 2013 ) + 1.484 (Dec. 2013 ) + 0.41 (Mar. 2014 ) + 0.24 (Jun. 2014 ) = $2.67.

* 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.

Babcock & Wilcox Co Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.000.000.000.000.008.137.626.545.83

Babcock & Wilcox Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 7.576.687.496.547.848.688.035.835.986.73
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