Switch to:
Encana Corp (NYSE:ECA)
EV/EBITDA
2.19 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Encana Corp's enterprise value is $15,370 Mil. Encana Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $7,028 Mil. Therefore, Encana Corp's EV/EBITDA ratio for today is 2.19.

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 $11.25. Encana Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $4.59. Therefore, Encana Corp's P/E Ratio for today is 2.45.

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)
=15369.715/7028
=2.19

Encana Corp's current Enterprise Value is $15,370 Mil.
Encana Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 709 (Mar. 2014 ) + 1092 (Jun. 2014 ) + 4189 (Sep. 2014 ) + 1038 (Dec. 2014 ) = $7,028 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=11.25/4.587
=2.45

Encana Corp's share price for today is $11.25.
Encana Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.16 (Mar. 2014 ) + 0.37 (Jun. 2014 ) + 3.79 (Sep. 2014 ) + 0.267 (Dec. 2014 ) = $4.59.

* 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.

Encana Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 3.602.524.012.254.134.767.79-7.868.962.65

Encana Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda -8.56-7.86-5.7458.027.988.967.827.642.422.65
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