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Family Dollar Stores Inc (NYSE:FDO)
EV/EBITDA
13.02 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Family Dollar Stores Inc's enterprise value is $9,352 Mil. Family Dollar Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Aug. 2014 was $718 Mil. Therefore, Family Dollar Stores Inc's EV/EBITDA ratio for today is 13.02.

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, Family Dollar Stores Inc's stock price is $78.96. Family Dollar Stores Inc's earnings per share for the trailing twelve months (TTM) ended in Aug. 2014 was $2.49. Therefore, Family Dollar Stores Inc's P/E Ratio for today is 31.70.

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


Definition

Family Dollar Stores Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9352.186/718.253
=13.02

Family Dollar Stores Inc's current Enterprise Value is $9,352 Mil.
Family Dollar Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Aug. 2014 was 189.517 (Nov. 2013 ) + 212.932 (Feb. 2014 ) + 198.102 (May. 2014 ) + 117.702 (Aug. 2014 ) = $718 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.

Family Dollar Stores Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=78.96/2.491
=31.70

Family Dollar Stores Inc's share price for today is $78.96.
Family Dollar Stores Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Aug. 2014 was 0.68 (Nov. 2013 ) + 0.8 (Feb. 2014 ) + 0.71 (May. 2014 ) + 0.301 (Aug. 2014 ) = $2.49.

* 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.

Family Dollar Stores Inc Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
ev2ebitda 6.878.527.516.796.437.118.008.638.9613.16

Family Dollar Stores Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ev2ebitda 9.348.639.737.818.248.968.919.138.8013.16
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