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FirstEnergy Corp (NYSE:FE)
EV/EBITDA
12.53 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, FirstEnergy Corp's enterprise value is $36,203 Mil. FirstEnergy Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $2,893 Mil. Therefore, FirstEnergy Corp's EV/EBITDA ratio for today is 12.53.

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, FirstEnergy Corp's stock price is $34.55. FirstEnergy Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $1.50. Therefore, FirstEnergy Corp's P/E Ratio for today is 23.10.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=36202.856/2893
=12.51

FirstEnergy Corp's current Enterprise Value is $36,203 Mil.
FirstEnergy Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 842 (Sep. 2013 ) + 722 (Dec. 2013 ) + 707 (Mar. 2014 ) + 622 (Jun. 2014 ) = $2,893 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=34.55/1.499
=23.05

FirstEnergy Corp's share price for today is $34.55.
FirstEnergy Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.52 (Sep. 2013 ) + 0.339 (Dec. 2013 ) + 0.49 (Mar. 2014 ) + 0.15 (Jun. 2014 ) = $1.50.

* 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.

FirstEnergy Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 5.926.397.137.287.949.579.5810.3510.8412.64

FirstEnergy Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 9.6610.1210.1210.8411.9513.8415.8512.6413.7912.43
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