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GuruFocus has detected 2 Warning Signs with Emerson Electric Co $EMR.
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Emerson Electric Co (NYSE:EMR)
EV/EBITDA
12.83 (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 $39,385 Mil. Emerson Electric Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $3,069 Mil. Therefore, Emerson Electric Co's EV/EBITDA ratio for today is 12.83.

EMR' s EV/EBITDA Range Over the Past 10 Years
Min: 8.6   Max: 12.3
Current: 10.26

8.6
12.3

During the past 13 years, the highest EV/EBITDA Ratio of Emerson Electric Co was 12.30. The lowest was 8.60. And the median was 10.00.

EMR's EV/EBITDA is ranked higher than
52% of the 1584 Companies
in the Global Diversified Industrials industry.

( Industry Median: 12.41 vs. EMR: 10.26 )

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 $61.12. Emerson Electric Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $2.47. Therefore, Emerson Electric Co's P/E Ratio for today is 24.74.

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)
=39385.361/3069
=12.83

Emerson Electric Co's current Enterprise Value is $39,385 Mil.
Emerson Electric Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 915 (Mar. 2016 ) + 989 (Jun. 2016 ) + 506 (Sep. 2016 ) + 659 (Dec. 2016 ) = $3,069 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=61.12/2.47
=24.74

Emerson Electric Co's share price for today is $61.12.
Emerson Electric Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.57 (Mar. 2016 ) + 0.74 (Jun. 2016 ) + 0.68 (Sep. 2016 ) + 0.48 (Dec. 2016 ) = $2.47.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Emerson Electric Co Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebitda 11.207.539.8010.947.139.1011.3511.688.7112.19

Emerson Electric Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 0.000.008.448.838.719.5012.1411.6112.1910.38
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