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Emerson Electric Co (NYSE:EMR)
EV/EBITDA
9.40 (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 $36,725 Mil. Emerson Electric Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $3,908 Mil. Therefore, Emerson Electric Co's EV/EBITDA ratio for today is 9.40.

EMR' s EV/EBITDA Range Over the Past 10 Years
Min: 5.5   Max: 13.1
Current: 9.4

5.5
13.1

During the past 13 years, the highest EV/EBITDA Ratio of Emerson Electric Co was 13.10. The lowest was 5.50. And the median was 10.40.

EMR's EV/EBITDA is ranked higher than
53% of the 1470 Companies
in the Global Diversified Industrials industry.

( Industry Median: 10.23 vs. EMR: 9.40 )

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 $50.83. Emerson Electric Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $2.93. Therefore, Emerson Electric Co's P/E Ratio for today is 17.38.

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)
=36724.533/3908
=9.40

Emerson Electric Co's current Enterprise Value is $36,725 Mil.
Emerson Electric Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 1046 (Jun. 2015 ) + 1247 (Sep. 2015 ) + 758 (Dec. 2015 ) + 857 (Mar. 2016 ) = $3,908 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)
=50.83/2.925
=17.38

Emerson Electric Co's share price for today is $50.83.
Emerson Electric Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 0.84 (Jun. 2015 ) + 0.985 (Sep. 2015 ) + 0.53 (Dec. 2015 ) + 0.57 (Mar. 2016 ) = $2.93.

* 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
ev2ebitda 10.5911.217.559.7310.837.139.0911.3710.586.33

Emerson Electric Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 12.4712.0610.4910.5810.257.868.176.337.169.98
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