Switch to:
Cintas Corp (NAS:CTAS)
EV/EBITDA
9.98 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Cintas Corp's enterprise value is $8,466 Mil. Cintas Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $842 Mil. Therefore, Cintas Corp's EV/EBITDA ratio for today is 9.98.

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, Cintas Corp's stock price is $65.96. Cintas Corp's earnings per share for the trailing twelve months (TTM) ended in May. 2014 was $3.07. Therefore, Cintas Corp's P/E Ratio for today is 21.40.

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


Definition

Cintas Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8465.533/841.9
=10.06

Cintas Corp's current Enterprise Value is $8,466 Mil.
Cintas Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 188.532 (Aug. 2013 ) + 189.842 (Nov. 2013 ) + 192.787 (Feb. 2014 ) + 270.739 (May. 2014 ) = $842 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.

Cintas Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=65.96/3.07
=21.49

Cintas Corp's share price for today is $65.96.
Cintas Corp's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2014 was 0.63 (Aug. 2013 ) + 0.7 (Nov. 2013 ) + 0.69 (Feb. 2014 ) + 1.05 (May. 2014 ) = $3.07.

* 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.

Cintas Corp Annual Data

May05May06May07May08May09May10May11May12May13May14
ev2ebitda 10.9510.758.976.826.697.708.908.058.939.80

Cintas Corp Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebitda 8.688.058.588.559.008.939.3010.1910.729.80
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide