Switch to:
DR Horton Inc (NYSE:DHI)
EV/EBITDA
10.21 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, DR Horton Inc's enterprise value is $8,984 Mil. DR Horton Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $880 Mil. Therefore, DR Horton Inc's EV/EBITDA ratio for today is 10.21.

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, DR Horton Inc's stock price is $26.57. DR Horton Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $1.54. Therefore, DR Horton Inc's P/E Ratio for today is 17.23.

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


Definition

DR Horton Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8984.017/879.8
=10.21

DR Horton Inc's current Enterprise Value is $8,984 Mil.
DR Horton Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 210.8 (Mar. 2014 ) + 181.7 (Jun. 2014 ) + 262.6 (Sep. 2014 ) + 224.7 (Dec. 2014 ) = $880 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.

DR Horton Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=26.57/1.542
=17.23

DR Horton Inc's share price for today is $26.57.
DR Horton Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.38 (Mar. 2014 ) + 0.32 (Jun. 2014 ) + 0.452 (Sep. 2014 ) + 0.39 (Dec. 2014 ) = $1.54.

* 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.

DR Horton Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ev2ebitda 6.246.28-9.51-2.57-11.5320.0061.0535.1112.8512.41

DR Horton Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 22.9721.8015.9412.8512.9612.0914.9112.4117.970.00
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)
FEEDBACK