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Encana Corp (NYSE:ECA)
EV/EBITDA
1.53 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Encana Corp's enterprise value is $9,599 Mil. Encana Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $6,268 Mil. Therefore, Encana Corp's EV/EBITDA ratio for today is 1.53.

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 $14.15. Encana Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $3.98. Therefore, Encana Corp's P/E Ratio for today is 3.55.

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)
=9598.700/6268
=1.53

Encana Corp's current Enterprise Value is $9,599 Mil.
Encana Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 278 (Dec. 2013 ) + 709 (Mar. 2014 ) + 1092 (Jun. 2014 ) + 4189 (Sep. 2014 ) = $6,268 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)
=14.15/3.981
=3.55

Encana Corp's share price for today is $14.15.
Encana Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.339 (Dec. 2013 ) + 0.16 (Mar. 2014 ) + 0.37 (Jun. 2014 ) + 3.79 (Sep. 2014 ) = $3.98.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.915.974.174.013.594.024.785.55-7.868.70

Encana Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 81.23-9.99-7.86-5.7458.027.988.707.827.642.42
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