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Donaldson Co Inc (NYSE:DCI)
EV/EBITDA
13.53 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Donaldson Co Inc's enterprise value is $5,967 Mil. Donaldson Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $441 Mil. Therefore, Donaldson Co Inc's EV/EBITDA ratio for today is 13.53.

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, Donaldson Co Inc's stock price is $42.06. Donaldson Co Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $1.74. Therefore, Donaldson Co Inc's P/E Ratio for today is 24.10.

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


Definition

Donaldson Co Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5966.647/440.851
=13.53

Donaldson Co Inc's current Enterprise Value is $5,967 Mil.
Donaldson Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 117.826 (Apr. 2013 ) + 119.576 (Jul. 2013 ) + 109.668 (Oct. 2013 ) + 93.781 (Jan. 2014 ) = $441 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.

Donaldson Co Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=42.06/1.744
=24.12

Donaldson Co Inc's share price for today is $42.06.
Donaldson Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.46 (Apr. 2013 ) + 0.484 (Jul. 2013 ) + 0.41 (Oct. 2013 ) + 0.39 (Jan. 2014 ) = $1.74.

* 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.

Donaldson Co Inc Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
ev2ebitda 11.9213.3811.4611.5712.0813.0212.3010.8211.3312.25

Donaldson Co Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 11.8113.0811.9011.3311.0212.9712.3812.2512.8113.28
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