Switch to:
Discovery Communications Inc (NAS:DISCK)
EV/EBITDA
8.87 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Discovery Communications Inc's enterprise value is $21,754 Mil. Discovery Communications Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,496 Mil. Therefore, Discovery Communications Inc's EV/EBITDA ratio for today is 8.87.

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, Discovery Communications Inc's stock price is $33.86. Discovery Communications Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.97. Therefore, Discovery Communications Inc's P/E Ratio for today is 11.70.

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


Definition

Discovery Communications Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=21753.500/2496
=8.72

Discovery Communications Inc's current Enterprise Value is $21,754 Mil.
Discovery Communications Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 623 (Dec. 2013 ) + 513 (Mar. 2014 ) + 750 (Jun. 2014 ) + 610 (Sep. 2014 ) = $2,496 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.

Discovery Communications Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=33.86/2.974
=11.39

Discovery Communications Inc's share price for today is $33.86.
Discovery Communications Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.814 (Dec. 2013 ) + 0.66 (Mar. 2014 ) + 1.09 (Jun. 2014 ) + 0.41 (Sep. 2014 ) = $2.97.

* 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.

Discovery Communications Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.008.24-41.01-30.687.065.389.465.837.988.93

Discovery Communications Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 7.187.587.989.179.359.138.938.167.299.46
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