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Equal Energy Ltd (NYSE:EQU)
EV/EBITDA
5.62 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Equal Energy Ltd's enterprise value is $219.93 Mil. Equal Energy Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $39.96 Mil. Therefore, Equal Energy Ltd's EV/EBITDA ratio for today is 5.62.

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, Equal Energy Ltd's stock price is $5.45. Equal Energy Ltd's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $0.33. Therefore, Equal Energy Ltd's P/E Ratio for today is 16.60.

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


Definition

Equal Energy Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=219.930/39.96
=5.50

Equal Energy Ltd's current Enterprise Value is $219.93 Mil.
Equal Energy Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 11.321 (Jun. 2013 ) + 7.162 (Sep. 2013 ) + 8.175 (Dec. 2013 ) + 13.302 (Mar. 2014 ) = $39.96 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.

Equal Energy Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.45/0.332
=16.42

Equal Energy Ltd's share price for today is $5.45.
Equal Energy Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.13 (Jun. 2013 ) + -0.02 (Sep. 2013 ) + 0.072 (Dec. 2013 ) + 0.15 (Mar. 2014 ) = $0.33.

* 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.

Equal Energy Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 21.7027.6410.98165.272.2610.3516.249.271.977.02

Equal Energy Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 9.277.192.431.561.972.722.736.907.024.87
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