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Equal Energy Ltd (NYSE:EQU)
EV/EBITDA
11.29 (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 $19.48 Mil. Therefore, Equal Energy Ltd's EV/EBITDA ratio for today is 11.29.

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 16.42.

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)
=219.930/19.476
=11.29

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 5.651 (Jun. 2013 ) + 3.818 (Sep. 2013 ) + 2.677 (Dec. 2013 ) + 7.33 (Mar. 2014 ) = $19.48 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 19.5027.589.77142.843.37-5.24-12.3411.3222.4119.88

Equal Energy Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 11.328.293.5012.1622.41108.6357.8820.0419.8810.04
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