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Discovery Communications Inc (NAS:DISCK)
EV/EBITDA
8.20 (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 $19,981 Mil. Discovery Communications Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $2,436 Mil. Therefore, Discovery Communications Inc's EV/EBITDA ratio for today is 8.20.

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 $30.30. Discovery Communications Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $1.70. Therefore, Discovery Communications Inc's P/E Ratio for today is 17.83.

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)
=19980.729/2436
=8.20

Discovery Communications Inc's current Enterprise Value is $19,981 Mil.
Discovery Communications Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 750 (Jun. 2014 ) + 610 (Sep. 2014 ) + 531 (Dec. 2014 ) + 545 (Mar. 2015 ) = $2,436 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)
=30.30/1.699
=17.83

Discovery Communications Inc's share price for today is $30.30.
Discovery Communications Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.545 (Jun. 2014 ) + 0.41 (Sep. 2014 ) + 0.374 (Dec. 2014 ) + 0.37 (Mar. 2015 ) = $1.70.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 49.14-85.69117.076.006.6311.867.4810.5912.009.11

Discovery Communications Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 10.5912.3612.3012.1512.0010.929.689.489.119.02
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