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Cliffs Natural Resources Inc (NYSE:CLF)
EV/EBITDA
6.48 (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 $6,791 Mil. Cliffs Natural Resources Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $1,046 Mil. Therefore, Cliffs Natural Resources Inc's EV/EBITDA ratio for today is 6.48.

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 $15.12. Cliffs Natural Resources Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $1.11. Therefore, Cliffs Natural Resources Inc's P/E Ratio for today is 13.70.

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)
=6791.462/1045.8
=6.49

Cliffs Natural Resources Inc's current Enterprise Value is $6,791 Mil.
Cliffs Natural Resources Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 406.3 (Jun. 2013 ) + 377.1 (Sep. 2013 ) + 172 (Dec. 2013 ) + 90.4 (Mar. 2014 ) = $1,046 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)
=15.12/1.11
=13.62

Cliffs Natural Resources Inc's share price for today is $15.12.
Cliffs Natural Resources Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.82 (Jun. 2013 ) + 0.66 (Sep. 2013 ) + 0.17 (Dec. 2013 ) + -0.54 (Mar. 2014 ) = $1.11.

* 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 -0.270.831.534.933.9710.916.324.7220.736.54

Cliffs Natural Resources Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 4.725.855.527.3020.7316.3218.6314.216.547.27
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