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Eaton Corp PLC (NYSE:ETN)
EV/EBITDA
11.72 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Eaton Corp PLC's enterprise value is $31,488 Mil. Eaton Corp PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $2,687 Mil. Therefore, Eaton Corp PLC's EV/EBITDA ratio for today is 11.72.

ETN' s EV/EBITDA Range Over the Past 10 Years
Min: 5.4   Max: 18.6
Current: 12.43

5.4
18.6

During the past 13 years, the highest EV/EBITDA Ratio of Eaton Corp PLC was 18.60. The lowest was 5.40. And the median was 10.40.

ETN's EV/EBITDA is ranked lower than
62% of the 2104 Companies
in the Global Diversified Industrials industry.

( Industry Median: 9.93 vs. ETN: 12.43 )

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, Eaton Corp PLC's stock price is $54.61. Eaton Corp PLC's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $4.32. Therefore, Eaton Corp PLC's P/E Ratio for today is 12.64.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=31488.092/2687
=11.72

Eaton Corp PLC's current Enterprise Value is $31,488 Mil.
Eaton Corp PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 257 (Dec. 2014 ) + 783 (Mar. 2015 ) + 872 (Jun. 2015 ) + 775 (Sep. 2015 ) = $2,687 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=54.61/4.319
=12.64

Eaton Corp PLC's share price for today is $54.61.
Eaton Corp PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 1.229 (Dec. 2014 ) + 0.99 (Mar. 2015 ) + 1.14 (Jun. 2015 ) + 0.96 (Sep. 2015 ) = $4.32.

* 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.

Eaton Corp PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 8.228.5010.536.5713.0211.377.7517.1614.0214.30

Eaton Corp PLC Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
ev2ebitda 16.0014.7614.0213.8014.0311.6714.3014.3414.0411.87
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