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Chesapeake Energy Corp (NYSE:CHK)
EV/EBITDA
6.50 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Chesapeake Energy Corp's enterprise value is $29,653 Mil. Chesapeake Energy Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $4,558 Mil. Therefore, Chesapeake Energy Corp's EV/EBITDA ratio for today is 6.50.

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, Chesapeake Energy Corp's stock price is $21.60. Chesapeake Energy Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $0.76. Therefore, Chesapeake Energy Corp's P/E Ratio for today is 28.30.

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


Definition

Chesapeake Energy Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=29652.700/4558
=6.51

Chesapeake Energy Corp's current Enterprise Value is $29,653 Mil.
Chesapeake Energy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 1141 (Sep. 2013 ) + 789 (Dec. 2013 ) + 1491 (Mar. 2014 ) + 1137 (Jun. 2014 ) = $4,558 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.

Chesapeake Energy Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=21.60/0.762
=28.35

Chesapeake Energy Corp's share price for today is $21.60.
Chesapeake Energy Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.24 (Sep. 2013 ) + -0.238 (Dec. 2013 ) + 0.54 (Mar. 2014 ) + 0.22 (Jun. 2014 ) = $0.76.

* 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.

Chesapeake Energy Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 4.956.514.206.215.88-3.796.685.9013.287.35

Chesapeake Energy Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 5.964.6215.5113.2813.9517.796.347.356.327.63
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