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Discovery Communications Inc (NAS:DISCK)
EV/EBITDA
10.71 (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 $25,020 Mil. Discovery Communications Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $2,354 Mil. Therefore, Discovery Communications Inc's EV/EBITDA ratio for today is 10.71.

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 $82.15. Discovery Communications Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $3.00. Therefore, Discovery Communications Inc's P/E Ratio for today is 27.70.

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)
=25019.513/2354
=10.63

Discovery Communications Inc's current Enterprise Value is $25,020 Mil.
Discovery Communications Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 639 (Jun. 2013 ) + 579 (Sep. 2013 ) + 623 (Dec. 2013 ) + 513 (Mar. 2014 ) = $2,354 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)
=82.15/3.004
=27.35

Discovery Communications Inc's share price for today is $82.15.
Discovery Communications Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.82 (Jun. 2013 ) + 0.71 (Sep. 2013 ) + 0.814 (Dec. 2013 ) + 0.66 (Mar. 2014 ) = $3.00.

* 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 0.0048.0359.75114.585.958.0611.667.3610.4211.90

Discovery Communications Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 7.369.099.339.9710.4212.1512.1111.9511.9010.74
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