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GuruFocus has detected 3 Warning Signs with Ensco PLC $ESV.
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Ensco PLC (NYSE:ESV)
EV-to-EBITDA
-7.60 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Ensco PLC's enterprise value is $6,031 Mil. Ensco PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $-793 Mil. Therefore, Ensco PLC's EV/EBITDA ratio for today is -7.60.

During the past 13 years, the highest EV/EBITDA Ratio of Ensco PLC was 16.60. The lowest was -14.30. And the median was 6.30.

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, Ensco PLC's stock price is $10.17. Ensco PLC's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $-7.55. Therefore, Ensco PLC's P/E Ratio for today is .

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


Definition

Ensco PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6030.579/-793
=-7.60

Ensco PLC's current Enterprise Value is $6,031 Mil.
Ensco PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was -2263.6 (Dec. 2015 ) + 427.4 (Mar. 2016 ) + 795.9 (Jun. 2016 ) + 247.3 (Sep. 2016 ) = $-793 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.

Ensco PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=10.17/-7.55
=

Ensco PLC's share price for today is $10.17.
Ensco PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was -10.61 (Dec. 2015 ) + 0.74 (Mar. 2016 ) + 2.04 (Jun. 2016 ) + 0.28 (Sep. 2016 ) = $-7.55.

* 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.

Ensco PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 6.275.902.203.907.5812.159.687.52-6.57-14.16

Ensco PLC Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 10.748.58-6.57-5.58-9.63-7.19-14.16-9.29-12.76-6.95
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