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Chesapeake Energy Corp (NYSE:CHK)
EV/EBITDA
6.15 (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 $31,798 Mil. Chesapeake Energy Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $5,168 Mil. Therefore, Chesapeake Energy Corp's EV/EBITDA ratio for today is 6.15.

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 $23.94. Chesapeake Energy Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.78. Therefore, Chesapeake Energy Corp's P/E Ratio for today is 30.60.

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)
=31797.800/5168
=6.15

Chesapeake Energy Corp's current Enterprise Value is $31,798 Mil.
Chesapeake Energy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 668 (Dec. 2013 ) + 1491 (Mar. 2014 ) + 1138 (Jun. 2014 ) + 1871 (Sep. 2014 ) = $5,168 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)
=23.94/0.782
=30.61

Chesapeake Energy Corp's share price for today is $23.94.
Chesapeake Energy Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.238 (Dec. 2013 ) + 0.54 (Mar. 2014 ) + 0.22 (Jun. 2014 ) + 0.26 (Sep. 2014 ) = $0.78.

* 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 4.956.514.206.216.06-3.796.895.7214.717.51

Chesapeake Energy Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 4.7516.7514.7114.2018.236.397.516.457.816.11
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