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GuruFocus has detected 5 Warning Signs with Cliffs Natural Resources Inc $CLF.
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Cliffs Natural Resources Inc (NYSE:CLF)
EV-to-EBITDA
12.58 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Cliffs Natural Resources Inc's enterprise value is $4,482 Mil. Cliffs Natural Resources Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $356 Mil. Therefore, Cliffs Natural Resources Inc's EV/EBITDA ratio for today is 12.58.

CLF' s EV-to-EBITDA Range Over the Past 10 Years
Min: 2   Max: 95
Current: 12.55

2
95

During the past 13 years, the highest EV/EBITDA Ratio of Cliffs Natural Resources Inc was 95.00. The lowest was 2.00. And the median was 7.50.

CLF's EV-to-EBITDA is ranked lower than
52% of the 547 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 12.54 vs. CLF: 12.55 )

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, Cliffs Natural Resources Inc's stock price is $10.71. Cliffs Natural Resources Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.93. Therefore, Cliffs Natural Resources Inc's P/E Ratio for today is 11.52.

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


Definition

Cliffs Natural Resources Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4481.722/356.2
=12.58

Cliffs Natural Resources Inc's current Enterprise Value is $4,482 Mil.
Cliffs Natural Resources Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 34.9 (Mar. 2016 ) + 101.6 (Jun. 2016 ) + 61.5 (Sep. 2016 ) + 158.2 (Dec. 2016 ) = $356 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Cliffs Natural Resources Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=10.71/0.93
=11.52

Cliffs Natural Resources Inc's share price for today is $10.71.
Cliffs Natural Resources Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.62 (Mar. 2016 ) + 0.07 (Jun. 2016 ) + -0.12 (Sep. 2016 ) + 0.36 (Dec. 2016 ) = $0.93.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Cliffs Natural Resources Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 9.423.9710.916.504.8948.364.216.4312.4711.08

Cliffs Natural Resources Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 3.536.439.1718.2012.6912.4714.6213.7213.8211.08
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