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GuruFocus has detected 6 Warning Signs with Frontline Ltd $FRO.
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Frontline Ltd (NYSE:FRO)
EV-to-EBITDA
7.25 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Frontline Ltd's enterprise value is $2,472.8 Mil. Frontline Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $340.9 Mil. Therefore, Frontline Ltd's EV/EBITDA ratio for today is 7.25.

FRO' s EV-to-EBITDA Range Over the Past 10 Years
Min: -9.4   Max: 429.8
Current: 7.25

-9.4
429.8

During the past 13 years, the highest EV/EBITDA Ratio of Frontline Ltd was 429.80. The lowest was -9.40. And the median was 7.10.

FRO's EV-to-EBITDA is ranked higher than
71% of the 596 Companies
in the Global Shipping & Ports industry.

( Industry Median: 10.38 vs. FRO: 7.25 )

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 $6.76. Frontline Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $1.10. Therefore, Frontline Ltd's P/E Ratio for today is 6.15.

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)
=2472.820/340.946
=7.25

Frontline Ltd's current Enterprise Value is $2,472.8 Mil.
Frontline Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 91.284 (Dec. 2015 ) + 131.032 (Mar. 2016 ) + 63.759 (Jun. 2016 ) + 54.871 (Sep. 2016 ) = $340.9 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=6.76/1.1
=6.15

Frontline Ltd's share price for today is $6.76.
Frontline Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.47 (Dec. 2015 ) + 0.5 (Mar. 2016 ) + 0.1 (Jun. 2016 ) + 0.03 (Sep. 2016 ) = $1.10.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Frontline Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 5.346.314.679.388.80-8.9259.4514.054.7310.36

Frontline Ltd Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 10.248.874.734.812.392.2510.366.266.997.17
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