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EMC Corp (NYSE:EMC)
EV/EBITDA
8.93 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, EMC Corp's enterprise value is $49,204 Mil. EMC Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $5,507 Mil. Therefore, EMC Corp's EV/EBITDA ratio for today is 8.93.

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, EMC Corp's stock price is $24.96. EMC Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $1.22. Therefore, EMC Corp's P/E Ratio for today is 20.44.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=49204.170/5507
=8.93

EMC Corp's current Enterprise Value is $49,204 Mil.
EMC Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 1340 (Sep. 2014 ) + 2082 (Dec. 2014 ) + 883 (Mar. 2015 ) + 1202 (Jun. 2015 ) = $5,507 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=24.96/1.221
=20.44

EMC Corp's share price for today is $24.96.
EMC Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.28 (Sep. 2014 ) + 0.561 (Dec. 2014 ) + 0.13 (Mar. 2015 ) + 0.25 (Jun. 2015 ) = $1.22.

* 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.

EMC Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 12.0312.8511.966.3112.4611.638.729.248.5810.02

EMC Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 8.768.589.268.589.759.5610.4910.028.969.52
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