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Frontline Ltd (NYSE:FRO)
EV/EBITDA
65.98 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Frontline Ltd's enterprise value is $1,171.3 Mil. Frontline Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $17.8 Mil. Therefore, Frontline Ltd's EV/EBITDA ratio for today is 65.98.

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, Frontline Ltd's stock price is $2.46. Frontline Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $-1.66. Therefore, Frontline Ltd's P/E Ratio for today is .

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


Definition

Frontline Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1171.346/17.752
=65.98

Frontline Ltd's current Enterprise Value is $1,171.3 Mil.
Frontline Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 32.858 (Dec. 2013 ) + 29.269 (Mar. 2014 ) + -34.952 (Jun. 2014 ) + -9.423 (Sep. 2014 ) = $17.8 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.

Frontline Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=2.46/-1.66
=

Frontline Ltd's share price for today is $2.46.
Frontline Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.12 (Dec. 2013 ) + -0.13 (Mar. 2014 ) + -0.81 (Jun. 2014 ) + -0.6 (Sep. 2014 ) = $-1.66.

* 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.

Frontline Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 4.035.025.316.134.458.828.44-8.9757.46467.84

Frontline Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda -4.51-5.8657.46391.76386.08425.67467.84676.0935.8859.24
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