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Cliffs Natural Resources Inc. (NYSE:CLF)
EV/EBITDA
5.17 (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 $6,294 Mil. Cliffs Natural Resources Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,264 Mil. Therefore, Cliffs Natural Resources Inc.'s EV/EBITDA ratio for today is 5.17.

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 $18.65. Cliffs Natural Resources Inc.'s earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $2.31. Therefore, Cliffs Natural Resources Inc.'s P/E Ratio for today is 8.10.

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)
=6294.377/1264.3
=4.98

Cliffs Natural Resources Inc.'s current Enterprise Value is $6,294 Mil.
Cliffs Natural Resources Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 308.9 (Mar. 2013 ) + 406.3 (Jun. 2013 ) + 377.1 (Sep. 2013 ) + 172 (Dec. 2013 ) = $1,264 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=18.65/2.31
=8.07

Cliffs Natural Resources Inc.'s share price for today is $18.65.
Cliffs Natural Resources Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.66 (Mar. 2013 ) + 0.82 (Jun. 2013 ) + 0.66 (Sep. 2013 ) + 0.17 (Dec. 2013 ) = $2.31.

* 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.

Cliffs Natural Resources Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda -0.270.831.534.933.9710.916.324.7248.366.54

Cliffs Natural Resources Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 4.074.725.855.527.3048.3642.8175.9930.316.54
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