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Emerson Electric Co (NYSE:EMR)
EV/EBITDA
12.08 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Emerson Electric Co's enterprise value is $49,582 Mil. Emerson Electric Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $4,198 Mil. Therefore, Emerson Electric Co's EV/EBITDA ratio for today is 12.08.

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, Emerson Electric Co's stock price is $65.21. Emerson Electric Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $2.80. Therefore, Emerson Electric Co's P/E Ratio for today is 23.50.

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


Definition

Emerson Electric Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=49581.723/4198
=11.81

Emerson Electric Co's current Enterprise Value is $49,582 Mil.
Emerson Electric Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 768 (Jun. 2013 ) + 1446 (Sep. 2013 ) + 906 (Dec. 2013 ) + 1078 (Mar. 2014 ) = $4,198 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.

Emerson Electric Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=65.21/2.798
=23.31

Emerson Electric Co's share price for today is $65.21.
Emerson Electric Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.27 (Jun. 2013 ) + 1.108 (Sep. 2013 ) + 0.65 (Dec. 2013 ) + 0.77 (Mar. 2014 ) = $2.80.

* 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.

Emerson Electric Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev2ebitda 10.8610.9810.5711.197.529.7310.837.139.0911.48

Emerson Electric Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 8.309.298.039.099.6210.0511.4611.4812.4812.10
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