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Eaton Corp PLC (NYSE:ETN)
EV/EBITDA
14.86 (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 $37,530 Mil. Eaton Corp PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $2,526 Mil. Therefore, Eaton Corp PLC's EV/EBITDA ratio for today is 14.86.

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 $63.21. Eaton Corp PLC's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.35. Therefore, Eaton Corp PLC's P/E Ratio for today is 18.90.

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)
=37529.900/2526
=14.86

Eaton Corp PLC's current Enterprise Value is $37,530 Mil.
Eaton Corp PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 834 (Sep. 2013 ) + 737 (Dec. 2013 ) + 759 (Mar. 2014 ) + 196 (Jun. 2014 ) = $2,526 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)
=63.21/3.352
=18.86

Eaton Corp PLC's share price for today is $63.21.
Eaton Corp PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.07 (Sep. 2013 ) + 1.002 (Dec. 2013 ) + 0.92 (Mar. 2014 ) + 0.36 (Jun. 2014 ) = $3.35.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 10.008.208.6410.536.5713.1211.387.7514.2513.99

Eaton Corp PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 8.747.028.5314.2514.3312.6211.9113.0012.8317.66
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