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GuruFocus has detected 7 Warning Signs with Encana Corp $ECA.
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Encana Corp (NYSE:ECA)
EV/EBITDA
-16.00 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Encana Corp's enterprise value is $15,685 Mil. Encana Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $-980 Mil. Therefore, Encana Corp's EV/EBITDA ratio for today is -16.00.

During the past 13 years, the highest EV/EBITDA Ratio of Encana Corp was 60.50. The lowest was -255.40. And the median was 3.50.

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, Encana Corp's stock price is $12.24. Encana Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $-1.48. Therefore, Encana Corp's P/E Ratio for today is .

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


Definition

Encana Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=15684.750/-980
=-16.00

Encana Corp's current Enterprise Value is $15,685 Mil.
Encana Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was -595 (Dec. 2015 ) + -316 (Mar. 2016 ) + -731 (Jun. 2016 ) + 662 (Sep. 2016 ) = $-980 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Encana Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=12.24/-1.48
=

Encana Corp's share price for today is $12.24.
Encana Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was -0.69 (Dec. 2015 ) + -0.45 (Mar. 2016 ) + -0.71 (Jun. 2016 ) + 0.37 (Sep. 2016 ) = $-1.48.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Encana Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 2.524.012.254.134.767.79-7.868.992.66-1.79

Encana Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 7.642.422.664.3220.92-2.78-1.79-2.61-3.99-13.79
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