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Forest City Enterprises Inc (NYSE:FCE.A)
EV/EBITDA
13.12 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Forest City Enterprises Inc's enterprise value is $8,737 Mil. Forest City Enterprises Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2013 was $668 Mil. Therefore, Forest City Enterprises Inc's EV/EBITDA ratio for today is 13.12.

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, Forest City Enterprises Inc's stock price is $18.70. Forest City Enterprises Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2013 was $0.77. Therefore, Forest City Enterprises Inc's P/E Ratio for today is 24.40.

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


Definition

Forest City Enterprises Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8737.139/667.561
=13.09

Forest City Enterprises Inc's current Enterprise Value is $8,737 Mil.
Forest City Enterprises Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2013 was 98.333 (Jan. 2013 ) + 101.472 (Apr. 2013 ) + 124.254 (Jul. 2013 ) + 343.502 (Oct. 2013 ) = $668 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.

Forest City Enterprises Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=18.70/0.766
=24.41

Forest City Enterprises Inc's share price for today is $18.70.
Forest City Enterprises Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2013 was 0.286 (Jan. 2013 ) + -0.11 (Apr. 2013 ) + -0.08 (Jul. 2013 ) + 0.67 (Oct. 2013 ) = $0.77.

* 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.

Forest City Enterprises Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
ev2ebitda 18.0119.0019.5025.0420.2717.4817.8615.1525.3524.92

Forest City Enterprises Inc Quarterly Data

Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13
ev2ebitda 20.6419.5125.3528.9630.0836.1724.9228.5425.6914.32
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