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GuruFocus has detected 6 Warning Signs with CenterPoint Energy Inc $CNP.
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CenterPoint Energy Inc (NYSE:CNP)
EV-to-EBITDA
15.39 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, CenterPoint Energy Inc's enterprise value is $19,423 Mil. CenterPoint Energy Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $1,262 Mil. Therefore, CenterPoint Energy Inc's EV/EBITDA ratio for today is 15.39.

CNP' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.2   Max: 60.2
Current: 15.4

6.2
60.2

During the past 13 years, the highest EV/EBITDA Ratio of CenterPoint Energy Inc was 60.20. The lowest was 6.20. And the median was 7.30.

CNP's EV-to-EBITDA is ranked lower than
76% of the 494 Companies
in the Global Utilities - Regulated Gas industry.

( Industry Median: 10.75 vs. CNP: 15.40 )

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, CenterPoint Energy Inc's stock price is $27.76. CenterPoint Energy Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $-0.42. Therefore, CenterPoint Energy Inc's P/E Ratio for today is .

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


Definition

CenterPoint Energy Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=19422.920/1262
=15.39

CenterPoint Energy Inc's current Enterprise Value is $19,423 Mil.
CenterPoint Energy Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was -461 (Dec. 2015 ) + 611 (Mar. 2016 ) + 406 (Jun. 2016 ) + 706 (Sep. 2016 ) = $1,262 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.

CenterPoint Energy Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=27.76/-0.42
=

CenterPoint Energy Inc's share price for today is $27.76.
CenterPoint Energy Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was -1.18 (Dec. 2015 ) + 0.36 (Mar. 2016 ) + -0.01 (Jun. 2016 ) + 0.41 (Sep. 2016 ) = $-0.42.

* 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.

CenterPoint Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 7.367.127.137.527.126.487.097.817.4752.66

CenterPoint Energy Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 8.097.807.477.147.0911.6752.6644.8659.2313.84
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