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Estee Lauder Cos Inc (NYSE:EL)
EV/EBITDA
14.00 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Estee Lauder Cos Inc's enterprise value is $27,008 Mil. Estee Lauder Cos Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,877 Mil. Therefore, Estee Lauder Cos Inc's EV/EBITDA ratio for today is 14.00.

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, Estee Lauder Cos Inc's stock price is $70.80. Estee Lauder Cos Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $2.54. Therefore, Estee Lauder Cos Inc's P/E Ratio for today is 28.00.

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


Definition

Estee Lauder Cos Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=27008.181/1876.9
=14.39

Estee Lauder Cos Inc's current Enterprise Value is $27,008 Mil.
Estee Lauder Cos Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 322.9 (Mar. 2013 ) + 277.3 (Jun. 2013 ) + 524.9 (Sep. 2013 ) + 751.8 (Dec. 2013 ) = $1,877 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.

Estee Lauder Cos Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=70.80/2.538
=27.90

Estee Lauder Cos Inc's share price for today is $70.80.
Estee Lauder Cos Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.45 (Mar. 2013 ) + 0.238 (Jun. 2013 ) + 0.76 (Sep. 2013 ) + 1.09 (Dec. 2013 ) = $2.54.

* 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.

Estee Lauder Cos Inc Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev2ebitda 13.119.7610.2510.299.268.528.5412.1012.7213.36

Estee Lauder Cos Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 9.3413.6615.1112.7214.2413.1013.5813.3614.4515.36
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