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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Encana Corp's enterprise value is $8,279 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 1.32.

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 $12.55. 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 3.15.

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)
=8279.359/6268
=1.32

Encana Corp's current Enterprise Value is $8,279 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)
=12.55/3.981
=3.15

Encana Corp's share price for today is $12.55.
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 3.573.602.524.012.254.134.767.79-7.868.70

Encana Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda -247.33-8.56-7.86-5.7458.027.988.707.827.642.42
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