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Canon Inc (NYSE:CAJ)
EV/EBITDA
4.99 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Canon Inc's enterprise value is $31,551 Mil. Canon Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $6,337 Mil. Therefore, Canon Inc's EV/EBITDA ratio for today is 4.99.

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, Canon Inc's stock price is $33.48. Canon Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $2.06. Therefore, Canon Inc's P/E Ratio for today is 16.20.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=31550.795/6337.04559838
=4.98

Canon Inc's current Enterprise Value is $31,551 Mil.
Canon Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 1668.72673643 (Jun. 2013 ) + 1611.54750946 (Sep. 2013 ) + 1684.05277513 (Dec. 2013 ) + 1372.71857737 (Mar. 2014 ) = $6,337 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=33.48/2.05746455036
=16.27

Canon Inc's share price for today is $33.48.
Canon Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.578692323899 (Jun. 2013 ) + 0.523678019842 (Sep. 2013 ) + 0.544096529525 (Dec. 2013 ) + 0.410997677097 (Mar. 2014 ) = $2.06.

* 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.

Canon Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 5.696.388.095.233.797.876.575.305.515.07

Canon Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 5.306.264.844.045.516.015.295.055.074.64
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