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Dick's Sporting Goods, Inc. (NYSE:DKS)
EV/EBITDA
8.88 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Dick's Sporting Goods, Inc.'s enterprise value is $6,248 Mil. Dick's Sporting Goods, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $704 Mil. Therefore, Dick's Sporting Goods, Inc.'s EV/EBITDA ratio for today is 8.88.

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, Dick's Sporting Goods, Inc.'s stock price is $51.86. Dick's Sporting Goods, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.70. Therefore, Dick's Sporting Goods, Inc.'s P/E Ratio for today is 19.20.

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


Definition

Dick's Sporting Goods, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6248.233/703.963
=8.88

Dick's Sporting Goods, Inc.'s current Enterprise Value is $6,248 Mil.
Dick's Sporting Goods, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 136.629 (Apr. 2013 ) + 182.336 (Jul. 2013 ) + 118.911 (Oct. 2013 ) + 266.087 (Jan. 2014 ) = $704 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.

Dick's Sporting Goods, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=51.86/2.697
=19.23

Dick's Sporting Goods, Inc.'s share price for today is $51.86.
Dick's Sporting Goods, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.52 (Apr. 2013 ) + 0.67 (Jul. 2013 ) + 0.4 (Oct. 2013 ) + 1.107 (Jan. 2014 ) = $2.70.

* 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.

Dick's Sporting Goods, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebitda 11.9310.8211.0510.8510.877.569.197.868.888.77

Dick's Sporting Goods, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 8.387.869.549.769.928.889.349.089.618.77
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